Bitcoin (BTC) treasury companies reached a record holding of 840,000 BTC in August, but underlying data reveal weakening institutional demand.

According to a Sept. 5 report by CryptoQuant, purchase volumes and transaction sizes plummeted to multi-year lows.

Strategy led corporate Bitcoin accumulation with 637,000 BTC, representing 76% of total treasury holdings. At the same time, 32 other companies control the remaining 203,000 BTC.

Holdings surged following the November 2024 US Presidential Election, with Strategy more than doubling its position from 279,000 to 637,000 BTC and other companies expanding their holdings 13-fold from 15,000 to 203,000 BTC.

Declining purchase volumes

Strategy acquired 3,700 BTC in August, down dramatically from 134,000 BTC purchased in November 2024. Other treasury companies purchased 14,800 BTC, which is below the 2025 average of 24,000 BTC and significantly lower than their June peak of 66,000 BTC.

The average Bitcoin per transaction dropped to 1,200 for Strategy and 343 for other companies, down 86% from early 2025 highs. The report attributed the smaller transaction sizes to liquidity constraints or potential market hesitation among institutional buyers.

Monthly holdings growth decelerated sharply for Strategy, falling from 44% in December 2024 to just 5% in August. Other treasury companies experienced similar patterns, with monthly growth dropping from 163% in March to 8% in August.

Despite recording 53 purchase transactions in June and maintaining elevated activity through August with 46 transactions, the frequency masks declining institutional appetite. Treasury companies completed only 14 transactions in November 2024, making current levels appear robust by comparison.

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The report focused on pure-play, publicly-traded Bitcoin treasury companies holding 1,000 BTC or more, excluding mining companies and firms with substantial operating businesses like Tesla and Coinbase.

Regulatory and market pressures mount

The treasury market faces new regulatory headwinds as Nasdaq implements shareholder approval requirements for equity issuances used to purchase crypto.

The rule change targets the crypto-treasury playbook, where public companies sell equity or convertibles to fund token purchases. As a result, this change could slow the rapid capital deployment that characterized 2025.

In addition, Sequans Communications became the first Bitcoin treasury company to execute a reverse stock split, adjusting its American Depositary Shares structure to maintain NYSE listing requirements.

The company controls 3,205 BTC, valued at approximately $355 million, but its stock declined 75% this year, raising concerns about potential asset sales to defend share prices.

The report concluded by revealing patterns similar to the 2020-2021 cycle, when Strategy’s holdings growth peaked at 78% before declining to 6% a year later. The current setup suggests institutional Bitcoin accumulation may be entering a similar deceleration phase.

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Bitcoin’s brief dip below $110,000 in the past 24 hours triggered one of the heaviest liquidation rounds in recent times.

According to Coinglass data, crypto traders betting on the market lost $811.6 million, with more than 179,000 traders forced out of positions.

Speaking on this broad liquidation event, Sean Dawson, head of research at Derive.xyz, told CryptoSlate:

“This sharp move appears to be the result of overleveraged positioning, particularly following ETH’s recent run-up, and an overnight dip in the S&P 500, which weighed on risk assets more broadly.”

Notably, the most significant single liquidation came from a BTC-USDT order worth $39.2 million on HTX.

Long traders, those betting on a price increase, absorbed the bulk of the losses, giving up $699.5 million, while shorts lost $112.2 million. This skew toward longs suggests that traders misjudged the strength of the recent rally, leaving them vulnerable when the price pulled back.

Bitcoin accounted for the steepest losses, with traders losing over $270 million in a single day. On Aug. 25, Glassnode noted that over $150 million in long positions were wiped out, marking one of the largest flushes since December 2024.

Ethereum followed with $266 million in liquidations, also dominated by long bets. Other major assets, including Solana, Dogecoin, and XRP, saw additional drawdowns of $38.5 million, $18.8 million, and $17.3 million, respectively.

Bitcoin could dip to $100,000

Meanwhile, the significant liquidations have fed into growing bearish sentiment among market participants, according to data from Derive.xyz

Data from the crypto derivatives trading platform showed that crypto traders now see a 35% probability of Bitcoin falling to $100,000 before the end of September, and a 55% chance that Ethereum could retest $4,000.

Dawson explained that the 25-delta skew has turned negative for both BTC and ETH, meaning traders are paying more for downside protection than upside exposure.

According to him:

“This is the strongest demand for downside protection we’ve seen in two weeks. Traders appear to be bracing for potential retests of $4,000 for ETH and $100,000 for BTC.”

He further noted that macroeconomic headwinds and volatility are weighing on the outlook, resetting risk appetites across the market.

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Arthur Hayes is once again sounding the alarm on a greater shakeup in the crypto market after worse-than-expected data from the U.S. Non-Farm Payrolls (NFP) jobs report sparked downside volatility in both traditional and digital markets. Despite his reputation as a long-term crypto bull, Hayes has recently moved assets and cash, preparing for further volatility ahead.

Hayes’ prediction comes as Bitcoin hovers in a turbulent range after a sharp June and July rally that saw the coin blast through $120,000 before encountering resistance and correcting down to below $114,000 in early August.

Hayes, a long-time advocate of Bitcoin’s macro potential, is now warning that short-term headwinds could push BTC below $100,000 and ETH below $3,000 in the aftermath of the latest jobs report, a number that fell well short of expectations and wiped $1.1 trillion from the stock market.

Risk assets sell off as Schiff reinforces ‘Bitcoin is not digital gold’

The crux of Arthur Hayes’ argument is rooted in macro liquidity. In his recent comment, he points to the spike in market volatility following the weaker-than-expected NFP, with risk assets selling off hard as traders rush to reprice interest rate expectations and the path ahead for Federal Reserve policy. For the crypto market, this unfolding reset spells trouble in the short term.

Bitcoin led the crypto downturn but managed to show relative strength compared to altcoins, which were hit even harder. Hayes points out that liquidity is being drained from markets as traders brace for further turbulence. Forced liquidations and margin calls are accelerating the move lower, with $172 million in Bitcoin long positions wiped out across exchanges in a 24-hour window as prices stumbled.

Bitcoin critic Peter Schiff wasted no opportunity to dunk on the number-one digital asset while praising the virtues of gold, commenting:

“Days like today make it clear that Bitcoin is not digital gold. We got bad economic news that sent gold and the Japanese yen up 2.2% and the euro up 1.5%. The NASDAQ went the other way, falling 2.2%. Bitcoin tanked 3%, tracking high-risk assets lower, not safe havens higher.”

Arthur Hayes is repositioning his assets

In the early hours of August 2, Hayes offloaded 2,373 ETH ($8.32 million), 7.76 million ENA ($4.62 million), and 38.86 billion PEPE ($414,700), causing a flurry of comments among the crypto community, most notably, Ethereum bulls who pointed out that Hayes had only recently been advocating for a $10K ETH. One follower commented:

“Classic Arthur shilling and dumping at the same time. Never fails.”

Hayes has been right before, predicting a BTC drop to $70,000 earlier in the current cycle when optimism and leverage were at fever pitch.

In April 2024, as Bitcoin scaled all-time highs and market euphoria peaked, Hayes issued a warning that the tides would soon turn, again calling out warning signs in liquidity, U.S. macro data, and the growing risks from overextended leverage in derivatives markets. Despite offloading ETH showing near-term caution, Hayes’ long-term view remains bullish.

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Journalist

Tanzeel Akhtar

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Tanzeel Akhtar

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Tanzeel Akhtar is a seasoned journalist who has been reporting on cryptocurrency and blockchain technology since 2015. Her work has appeared in leading publications including The Wall Street Journal,…

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July 16, 2025

According to Bitwise Asset Management, newly inaugurated U.S. leadership delivered sweeping pro-crypto reforms—including a national executive order prioritizing digital assets, the launch of a Strategic Bitcoin Reserve, and the dismissal of most Securities and Exchange Commission (SEC) lawsuits targeting the sector.

Perhaps most impactful was the official termination of Operation Choke Point 2.0, a regulatory chokehold that limited crypto’s access to traditional banking rails. These moves represented a long-awaited victory in Washington, offering the kind of policy clarity the digital asset industry had pursued for over a decade.

Despite the regulatory momentum, markets reacted with a downturn. The Bitwise 10 Large Cap Crypto Index fell 18% in Q1. Ethereum dropped 45%, and crypto equities declined by 27%. “Frustrating,” was how Bitwise CIO Matt Hougan described the quarter—a period when positive structural shifts failed to lift market sentiment.

Quiet Momentum in Stablecoins and RWAs

While token prices dominated headlines, Bitwise’s data shows a different story unfolding under the surface. Stablecoins posted $218 billion in assets under management—up 13.5% from the previous quarter—alongside a 30% surge in transaction volumes.

Tokenized real-world assets (RWAs) gained major traction, jumping over 37% quarter-over-quarter, while regulated bitcoin futures trading volume and open interest reached all-time highs. These developments indicate growing institutional engagement and pivoting toward asset types with real-world utility or compliance-first design.

“Parts of the crypto market are experiencing raging bull markets,” Hougan noted, citing stablecoins, RWAs, and bitcoin futures as key pockets of growth.

A More Resilient Q2 on the Horizon

Bitwise points to several potential catalysts in Q2 2025. These include increased global liquidity, progress on stablecoin legislation in the U.S., and a rising narrative around bitcoin’s role as a strategic hedge asset.

As central banks turn dovish and major legislative reforms gain traction, crypto infrastructure appears primed for a breakout. The expected repeal of SEC guidance SAB 121 and new banking rules could unlock further institutional participation.

Additionally, with geopolitical instability on the rise, digital assets like bitcoin are being reevaluated as long-term reserve assets by both sovereigns and corporations.

While Q1 may have underwhelmed on price action, Bitwise suggests that the structural groundwork laid during the quarter could lay the foundation for a more powerful rally in the months ahead.

CIO Warns of Fragile Progress Without Congressional Support

In May, Bitwise CIO Matt Hougan issued a stark warning about the fragility of crypto’s momentum, urging Congress to pass lasting regulation.

In a note to clients, Hougan praised recent moves by the Trump administration—such as the creation of a Strategic Bitcoin Reserve and the rollback of SEC enforcement—but stressed that these executive actions are not permanent. Without legislation, he cautioned, future administrations could easily reverse course.

Despite his long-term optimism—predicting new all-time highs and even a potential $200,000 Bitcoin price—Hougan said the industry faces a “rough summer” if lawmakers fail to deliver regulatory clarity. His comments reflect growing concern within the digital asset space that political support alone isn’t enough to secure crypto’s future.

Crypto Journalist

Amin Ayan

Crypto Journalist

Amin Ayan

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Amin Ayan is a crypto journalist with over four years of experience in the industry. He has contributed to leading publications such as Cryptonews, Investing.com, 99Bitcoins, and 24/7 Wall St. He has…

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June 21, 2025

Ethereum staking has reached a new milestone this week, with more than 35 million ETH, over 28.3% of the total supply, now locked into the network’s proof-of-stake system, according to Dune Analytics.

The surge in staked ETH comes even as broader market conditions remain subdued, suggesting long-term conviction among holders and a tightening of liquid supply.

Over 500,000 ETH was staked in just the first half of June. The trend signals a shift in investor behavior, with many opting to earn yield rather than sell at current prices.

Ethereum Staking Makes ETH a Strong Assets

Analysts say the growth in Ethereum staking is contributing to ETH’s reputation as one of the most fundamentally strong digital assets.

“The rise in ETH staking reflects growing confidence and declining sell pressure,” said pseudonymous analyst Onchainschool via CryptoQuant.

Addresses that have never sold their ETH now collectively hold 22.8 million coins, an all-time high.

The momentum also follows a recent regulatory shift in the U.S. In late May, the Securities and Exchange Commission clarified that protocol-based staking activities do not require registration under the Securities Act.

The announcement was interpreted by many as a win for Ethereum and other proof-of-stake networks.

Still, questions remain around the approval of Ether staking ETFs. The SEC has yet to greenlight Bitwise’s application to include staking in its ETF product, having postponed the decision in May.

Currently, more than 25% of all staked ETH is handled by liquid staking giant Lido, while Binance and Coinbase account for 7.5% and 7.4%, respectively.

Coinbase has also emerged as Ethereum’s largest node operator, controlling over 11.4% of staked ETH via its validators.

While some critics warn that liquid staking introduces centralization risks, particularly if too much influence becomes concentrated in a handful of platforms, adoption among institutions is accelerating.

Ethereum Whale Accumulation Hits 7-Year High

Ethereum is witnessing its most intense whale accumulation in seven years, with large wallets adding over 871,000 ETH in a single day on June 12.

This marks the highest daily inflow in 2025 and has pushed total holdings in 1,000 to 10,000 ETH wallets past 14.3 million ETH, according to Glassnode.

The surge reverses a multi-month downtrend in whale activity and points to renewed long-term confidence in Ethereum’s fundamentals.

While ETH’s price remains relatively stable, such heavy accumulation suggests that major players may be positioning ahead of key ecosystem developments or macroeconomic catalysts.

Historical data shows that this type of wallet-level behavior has often preceded sharp price increases.

Analysts suggest upcoming Ethereum upgrades, increased real-world asset tokenization, and growing adoption of Layer 2 networks like Arbitrum and Optimism could be contributing factors.

However, not all developments are positive. Ethereum-linked firms like SharpLink Gaming have seen turbulence, with shares plunging 73% after the company moved to register shares for resale shortly after announcing a potential $1 billion ETH allocation.

The Bitcoin price has fallen more than -8.8% since Friday when Bybit suffered the biggest crypto hack in history. The flagship digital asset reached a peak of $99,493 late last week, only to retreat to roughly $91,500 at press time, marking a -5.5% decline since Monday. This downturn not only shatters Bitcoin’s attempt to hold above $95,000 but also places it on the verge of losing its critical 97-day trading range between $91,000 and $102,000. Notably, Bitcoin’s price has broken below the descending trend channel that has been in play since January 20.

What’s Next For Bitcoin?

Ari Paul, co-founder and Chief Investment Officer of BlockTower Capital, offered a wide-ranging view on Bitcoin’s trajectory and the broader macroeconomic environment. In a post on X, Paul touched on the potential for continued equity-market weakness and its knock-on effect on digital assets: “My market take: equities in for 4-15 months of pain (I’ll guess 9 months) tied to deflationary government policies (tariffs and mass layoffs mostly). Then it’s a political question – does Trump admin ‘capitulate’ and turn severely inflationary? In vast majority of similar cases in history the answer was yes, but just a low confidence guess to me currently.”

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Shifting focus to crypto, Paul emphasized that while cryptocurrencies may still display short-term correlations with equities, they are inherently on different cyclical rhythms: “What does that mean for crypto? I continue to think crypto and equities are on different cycles rhythms, but that doesn’t negate shorter term correlation. Alts probably follow equities down at least at first (but they’re already down so much, even versus 2021 prices, they may bottom well before equities.)”

Speaking on Bitcoin, Paul predicts that the leading cryptocurrency will “act like a blend of gold and S&P 500,” adding, “if gold remains strong, than that would suggest Bitcoin would outperform losing equities, but maybe not by much. A retrace to ~$73k-$77k seems plausible, I’d probably add there.”

Despite the near-term volatility, Paul remains optimistic: “I remain confident crypto bull market not over, but this is looking increasingly different from prior cycles, maybe substantially slower and longer. My base case is that crypto will lead the general macro inflation turn, so maybe crypto bull run resumes in 6 months and equities turn up in 9. The dates given are just indications of my guesstimates. I place no weight on the exact timeframes.”

BitMEX founder Arthur Hayes also took to X to warn of an imminent downward push. He pointed to the mechanics of Bitcoin Exchange-Traded Funds (ETFs) and futures market arbitrage as potential drivers of increased selling pressure.

“Bitcoin goblin town incoming: Lots of IBIT holders are hedge funds that went long ETF short CME future to earn a yield greater than where they fund, short term US treasuries. If that basis drops as BTC falls, then these funds will sell IBIT and buy back CME futures. These funds are in profit, and given basis is close to UST yields they will unwind during US hours and realise their profit. $70,000 I see you mofo,” he writes.

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Notably, research firm 10x Research published an analysis on Monday indicating that while Bitcoin ETFs—led by BlackRock’s IBIT product—have garnered $38.6 billion in net inflows since their January 2024 launch, much of this capital may not represent straightforward bets on rising BTC prices, aligning with Hayes’ statement.

“Although Bitcoin ETFs have attracted $38.6 billion in net inflows since their January 2024 launch, our analysis suggests that only $17.5 billion (44%) represents genuine long-only buying. The majority—56%—is likely tied to arbitrage strategies, where short Bitcoin futures positions offset inflows,” the firm noted.

Prior to the ongoing price drop, market technician Tony “The Bull” Severino, warned of looming volatility in Bitcoin, noting that the daily Bollinger Bands were hitting extreme tightness—a pattern often followed by a significant price swing: “A decision will be made soon in Bitcoin, as the daily Bollinger Bands reach the third-tightest reading since 2018. In late 2018, record tightness led to a 50% decline in just over a month. In mid 2023, record tightness led to a 200% climb in just over 200 days. Which direction does volatility release?”

With Bitcoin teetering just above $91,000 and the market still reeling from Bybit’s historic hack, the market is at a pivotal juncture. Chart signals, macroeconomic uncertainties, and the unwinding of complex trading strategies collectively draw a clouded outlook with a possible extension of this slump to the $73,000–$77,000 range in the coming months.

Meanwhile, this does not have to herald the beginning of the bear market. Chris Burniske, partner at Placeholder VC, commented via X: “In the middle of 2021:BTC drew down 56%, ETH drew down 61%, SOL drew down 67%, many others 70-80%+. You can come up with all the reasons for why this cycle is different, but the mid-bull reset we’re going through isn’t unprecedented. Those calling for a full blown bear are misguided.”

At press time, BTC traded at $90,537.

Featured image created with DALL.E, chart from TradingView.com