Bitcoin and Ether holdings by crypto treasury firms have sharply declined following the market downturn earlier in October, with most major players staying on the sidelines, according to David Duong, Global Head of Institutional Research at Coinbase. The post-crash environment has seen a steep drop in activity from Digital Asset Treasury (DAT) companies, which had previously been substantial buyers of major cryptocurrencies.
Since the steep decline in prices that occurred between October 10 and 11—when Bitcoin plummeted by 9%, falling from approximately $121,500 to under $110,500—many corporate investors have refrained from making new acquisitions. The market has since seen Bitcoin hit lows of nearly $105,000 before making a modest recovery to around $114,250, though trading has remained largely flat.
Duong emphasized that the retreat of these usually aggressive institutional buyers is not just a temporary pause, but a signal of deeper uncertainty in the market. “Over the past two weeks, BTC purchases by DATs have dropped to near yearly lows and haven’t rebounded significantly, even on days when the market shows gains,” he noted. According to him, these entities generally possess substantial capital and often act as market stabilizers. Their current absence reinforces the broader sense of caution pervading the crypto sector.
The hesitation among institutional players is partly due to a broader decline in the valuations of crypto treasury companies themselves. As their market capitalizations draw closer to the book value of their crypto holdings, investor enthusiasm has waned, dragging stock prices down from the highs seen earlier in the year.
Despite the general slowdown, one company has bucked the trend. BitMine Immersion Technologies, which focuses on Ethereum, has continued to accumulate aggressively. Since October 10, BitMine has reportedly spent over $1.9 billion acquiring nearly 483,000 ETH. Ethereum’s price mirrored Bitcoin’s decline, dropping over 15% to a low of $3,686 during the same period. It has since rebounded modestly to $4,130.
BitMine’s consistent purchases, complemented by smaller-scale acquisitions from other funds, have helped keep the net ETH treasury inflows in positive territory over the past week. Nevertheless, Duong warned that if BitMine slows or halts its buying activity, the market could lose one of its last institutional support pillars. “If they pause, the corporate demand for ETH could vanish quickly,” he cautioned. “This calls for a more defensive approach in the short term, as the market feels increasingly fragile without the backing of the most discretionary capital sources.”
The broader implications of this behavior are significant. Institutional investors often act as a barometer for market sentiment. Their withdrawal from active buying suggests that many are waiting for clearer signs of recovery or more favorable entry points. This cautious stance may delay any sustained rebound in crypto prices, reinforcing a cycle of hesitancy.
Moreover, the recent volatility has reignited concerns about leverage in the system. The October downturn flushed out many overleveraged positions, leading to a “washout” that further discouraged risk-taking. Even with prices now stabilizing, the psychological impact remains, contributing to the subdued activity among corporate treasuries.
It’s also worth noting that the current macroeconomic backdrop plays a role. With interest rates remaining elevated and regulatory scrutiny intensifying, many companies are re-evaluating their exposure to volatile digital assets. This more conservative posture is not limited to crypto-native firms; even traditional institutions dabbling in crypto are reassessing their strategies.
Another element influencing treasury decisions is the performance of crypto-related equities. Many public firms that hold large amounts of BTC or ETH have seen their share prices decline alongside the value of their holdings. This double hit—declining token prices and falling equity valuations—has further constrained these firms’ ability to make new investments without raising external capital or liquidating other assets.
In contrast to Bitcoin-focused DATs, Ethereum treasuries appear marginally more resilient, largely due to BitMine’s aggressive accumulation. However, this resilience remains fragile and heavily dependent on a single player’s activity. Without broader participation, the sustainability of this trend remains questionable.
Looking ahead, the behavior of institutional crypto treasuries will serve as a key indicator of market sentiment. A renewed wave of buying from these entities could signal a return of confidence, while continued hesitation may prolong the current stagnation. For now, the landscape remains cautious, with most players opting to wait on the sidelines rather than risk capital in an uncertain environment.
In conclusion, the post-crash market has entered a phase of institutional retreat. Except for outliers like BitMine, the majority of crypto treasuries are adopting a wait-and-see approach, underscoring the fragility of current support levels. Until confidence returns and market conditions stabilize, significant corporate buying may remain elusive, limiting crypto’s near-term upside potential.