Institutional investors are showing less interest in Bitcoin following the October market downturn, leading to a sharp decline in treasury investments. Coinbase data shows crypto treasury companies have largely withdrawn from the market since October 10th, with Bitcoin purchases plummeting to near-year-low levels. This follows months of steady accumulation seen earlier this year. 📉 📈 🚨 💰
New data by David Duong reveals that Bitcoin buying activity has significantly decreased since the market crash. Notably, treasury inflows have dwindled from a peak of $8 billion in mid-August to almost $1 billion recently, levels not seen since early spring.
Experts attribute this slowdown to factors such as heightened geopolitical tensions, US fiscal uncertainty, and looming FOMC decisions that may impact liquidity conditions. 🌎💰
Despite the retreat, some institutions remain relatively committed to Bitcoin, particularly Ethereum and Solana. As they navigate a volatile market and await further clarity, their strategies appear to be evolving.
Historical trends show past periods of diminished Bitcoin buying by corporate treasuries have often preceded significant re-entry phases when on-chain reserves decline. Will history repeat itself as institutional investors remain cautious and wait for market volatility to subside?