Why Are Corporations Hoarding Bitcoin While Prices Plummet? 🤔💸

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In the grand theater of finance, Bitcoin struts about, flaunting its price above the $85,000 mark, as if it were a peacock in a field of crows. A slight upward movement, they say, a mere 2.2% on the daily chart, enough to make some traders rub their hands together in anticipation of a stronger rally. But, oh, the irony! The broader timeframes tell a tale of woe, a different story altogether.

Over the last month, Bitcoin has taken a nosedive, down over 8%, and from its January 2025 all-time high of over $109,000, it has plummeted more than 20%. It’s as if the digital currency is playing a game of limbo—how low can you go?

Public Companies Hoard BTC While Long-Term Holders Flee

Despite this dismal performance, the blockchain data provider CryptoQuant has unearthed a curious trend: public companies are gobbling up Bitcoin like it’s the last slice of pizza at a party. In the first quarter of 2025, these firms added a staggering 91,781 BTC to their coffers, suggesting they still believe in Bitcoin’s long-term value proposition. Or perhaps they just enjoy the thrill of the chase.

Among the notable buyers, Tether, that crafty little rascal, added 8,888 BTC in Q1 2025, bringing its total to 92,646 BTC. MicroStrategy, the heavyweight champion of Bitcoin acquisition, purchased a jaw-dropping 81,785 BTC worth over $8 billion. Talk about commitment! Other players in this game included Semler Scientific (+1,108 BTC), Metaplanet (+2,285 BTC), and The Blockchain Company (+605 BTC). It’s like a Bitcoin buffet, and everyone’s piling their plates high.

Meanwhile, CryptoQuant revealed that Marathon Digital is planning a $2 billion stock sale to fund future Bitcoin purchases, while GameStop is exploring a $1.3 billion convertible note offering to dip its toes into the Bitcoin waters. Who knew video games and digital gold would make such a delightful pair?

But alas, this corporate feeding frenzy wasn’t enough to keep Bitcoin’s price afloat. Long-term holders, perhaps feeling a bit peckish themselves, offloaded around 178,000 BTC during the same period, adding a hefty dose of sell pressure. It’s like watching a game of tug-of-war, and the rope is fraying.

To make matters worse, approximately $4.8 billion flowed out of spot Bitcoin ETFs, further weighing down the price action. It’s as if the market is saying, “Thanks for the Bitcoin, but I think I’ll pass on the price appreciation.”

Adding to the sell pressure: $4.8 billion flowed out of Bitcoin ETFs in Q1.

Despite corporate buying, this wave of outflows likely weighed heavily on price.

— CryptoQuant.com (@cryptoquant_com) April 2, 2025

Analyst Identifies Key Support Levels for Bitcoin

Meanwhile, the ever-watchful CryptoQuant analyst BorisVest has pinpointed an important support zone between $65,000 and $71,000. This range, derived from the Active Realized Price and the True Market Mean Price, is like a safety net for Bitcoin. The Active Realized Price, hovering around $71,000, filters out long-dormant coins, while the True Market Mean Price at $65,000 represents a broader average based on recent transactions. It’s a delicate dance of numbers.

BorisVest suggests that if Bitcoin’s price tumbles into this zone, it could attract strong demand from long-term holders and institutional buyers alike. Perhaps this area will serve as a foundation for further accumulation, or maybe it’ll just be a cozy spot for Bitcoin to take a nap.

Regardless, while some market participants are packing their bags and heading for the exit, others are seizing the opportunity to accumulate, like squirrels hoarding acorns for the winter. The market, it seems, is a curious place indeed.

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2025-04-03 09:42