What Will the Slowing Growth of Bitcoin, Ethereum Treasury Buys Mean for Markets?
The slowdown in treasury purchases of Bitcoin and Ethereum has significantly impacted market stability, contributing to a decline in prices amid ongoing macroeconomic uncertainties. Analysts note that corporate buying, which previously supported Bitcoin's price and market surges during the summer, has decreased sharply, with only 12,600 BTC purchased in August and 15,500 BTC in September so far—less than half the quantity acquired in July. This reduced buying pressure has left the market exposed to increased volatility. Experts predict that Bitcoin could fall to $105,000 before potentially climbing to a new all-time high of $125,000, with a significant uptick in the likelihood of hitting the $105,000 mark. In addition, market observers have identified a correlation between reduced treasury activity and broader declines in associated equities. While regulatory scrutiny is on the rise regarding companies managing digital asset strategies, some analysts still hold bullish views on Bitcoin's future performance, forecasting potential surges due to corporate treasury adoption. Overall, the current market scenario is characterized by heightened volatility and uncertainty stemming from waning treasury participation.
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