Public companies that buy and hold Bitcoin and Ether have largely stopped accumulating since the market tumbled earlier in October, a move signaling a recent lapse in confidence.
“Over the last two weeks, BTC buying by DATs fell to near year-to-date lows and has not meaningfully recovered, even on green days,” he added.
BitMine is still buying
Duong said the buying lull from Bitcoin buying companies is significant as they are “usually heavy hitters with deep pockets,” but their pullback since Oct. 10 “signals limited confidence on their part.”
The buying slowdown “highlights some caution from large players post leverage washout, even at current ‘support’ levels,” he added.
Ether fell alongside Bitcoin earlier this month, dropping over 15% to a low of $3,686 between Oct. 10 and 11, but has since slightly recovered to $4,130.
BitMine’s buying, alongside “smaller contributions from other funds,” has buoyed the total seven-day purchases by ETH treasury companies into the positive, Duong said.
However, he added that if the company “slows or pauses, we worry that the apparent corporate bid could fade.”
“We think this warrants more cautious positioning in the short term,” Duong said. “The market appears more fragile when the biggest discretionary balance sheets are sidelined.”
