A recent report from Bloomberg announced a significant decline in corporate investments in the Department of Cryptocurrency.
Purchases from published purchases Digital Assets Ministry of Finance It plummeted dramatically from 64,000 Bitcoin (BTC) in July to just 12,600 in August. The figures for September are currently around 15,500. This decline represents a significant 76% decrease from early summer enthusiasm.
Cryptocurrency company evaluation sink
The broader cryptocurrency market faces additional challenges, with Bitcoin falling nearly 6% in the past week, exacerbated by wider selling, characterized by sudden liquidation.
Several Treasury stocks that previously raised capital pipe (Private investment in public stocks) transactions have seen a sharp drop in valuations, with some transactions 97% below the initial issuance price.
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One reason behind this shift is regulatory scrutiny, with the report showing that US authorities are investigating “abnormal trading activities” within the Digital Assets Treasury stock prior to the acquisition.
Marx Thierren, head of research at 10 times; Appeal Many pipe transactions in particular include warrants that complicate the problem with volatility and dilution effects, so transparency regarding the crypto-acquisition price of the underlying token and the actual Shet account is limited.
The valuations of some treasury companies that once enjoyed high market premiums have declined dramatically, bringing market value closer to actual Bitcoin.
This shift is measured by Navigate from the market cap (Net Asset Value) Multiple, this reflects current trends: cutting off the value of stock prices and Bitcoin reserves is closed.
Decrease in institutional support
As corporate buyers retreat, Bloomberg claims that the crypto market is experiencing a “feedback loop” that is declining Institutional support. The report argues that this lack of stable capital sources undermines demand and leads to a more unstable market environment.
The current landscape is creating a “2-speed market.” On the one hand, the derivatives market is showing significant stress, causing long-term futures demand to collapse, and Bitcoin Long worth $275 million will be liquidated in just 24 hours.
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Conversely, crypto-related products continue to attract investment, as evidenced by Ishares Bitcoin Trust Funds traded on exchanges (ETF) won a $2.5 billion inflow in September, a significant increase from the previous month’s $707 million.
Arca’s chief investment officer, Jeff Dorman, stressed that the current weakness of the crypto market is likely to be the result of a decline in activity from the Ministry of Digital Assets Treasury, rather than a direct cause of sales pressure. He argues that these major buyers cuts have created a more cautious market environment.
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