Bitcoin Treasuries Experience Significant Slowdown Amid Unrealized Losses
- Corporate treasuries acquired only 5,900 BTC in the last three months, a stark decline from previous acquisition rates.
- The average cost basis for existing corporate Bitcoin holdings is approximately $80,500, indicating that they are currently at a loss.
- In July alone, companies purchased 89,000 BTC, highlighting the dramatic shift in sentiment since then.
- Recent attempts to reclaim the cost basis of $80,500 have failed as Bitcoin prices remain below this level.
- US spot Bitcoin exchange-traded funds (ETFs) saw net outflows of $462.7 million over five days ending September 11.
The current market conditions reflect a significant downturn in corporate interest towards Bitcoin as many treasuries sit on paper losses and investor capital inflows stall. The recent interest rate hike by the US Federal Reserve may further impact liquidity in the crypto market.
With only 5,900 BTC added by corporate treasuries recently, it underscores a cautious approach among investors amid ongoing price struggles and unrealized losses on their holdings. (Source)
