Coinbase Executive Reveals Big Bitcoin Buyers Have Been Absent Since October Market Decline
Institutional Bitcoin purchases have drastically reduced, raising concerns about future market stability.
Coinbase’s Head of Institutional Research, David Duong, noted that Bitcoin digital asset treasury companies (DATs) have largely disappeared since the market drop on October 10. Even during brief recoveries, engagements from DATs remain minimal.
Have DATs Disappeared?
In the last two weeks, Bitcoin purchases by DATs reached yearly lows, indicating possible hesitance from major institutional players who often stabilize the market when optimism is present. Duong explained that the only noteworthy buying action following the correction came from Ethereum-focused DATs, with significant involvement from a single entity, Bitmine (BMNR). If BMNR’s purchasing ceases, the overall corporate demand for ETH might diminish swiftly.
Duong expressed concerns about the slow engagement of Bitcoin DATs and warned that this cautious atmosphere suggests major investors are holding back due to the recent market corrections.
Even crypto analyst Maartunn has shared similar apprehensions, emphasizing that the aggressive Bitcoin accumulation strategy led by Michael Saylor has significantly slowed down in recent months. Following an era marked by substantial investments with weekly purchases exceeding 10,000 BTC, their buying pace has dropped to around 200 BTC weekly. Maartunn remarked that while the firm’s core conviction in Bitcoin hasn’t waned, their capacity for large purchases is diminishing. Recently, the company did manage to acquire 390 BTC for $43.4 million.
Corporate Bitcoin Investments Increase
On a positive note, Prenetics Global, a health technology company listed on Nasdaq, has successfully completed a $48 million equity round to enhance its Bitcoin reserves. This move drew significant interest from various crypto investors, including Kraken and Jihan Wu’s GPTX. Both Aryna Sabalenka and Adrian Cheng have amplified their investments, while sports icon David Beckham continues to remain a shareholder.
In another update, American Bitcoin Corp., established by Eric and Donald Trump Jr., expanded its Bitcoin portfolio by acquiring 1,414 BTC worth over $160 million, bringing its total holdings to 3,865 BTC, valued at approximately $450 million as of October 24th. Recent reports suggest their accumulation places American Bitcoin among the top 26 public holders of Bitcoin.
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