Companies that buy and hold bitcoin and ether largely stopped accumulating after cryptocurrency valuations fell sharply earlier this month. Is this the end of the corporate boom?
Companies don’t want bitcoin and ethers anymore?
Companies that changed their profile and started buying BTC and ETH “largely” stopped accumulating cryptocurrencies after October 10 and “have not yet taken action in this direction” – re-purchases of digital assets, he noticed David Duong, global director of investment research at Coinbase Institutional. He emphasized that “over the last two weeks, BTC purchases” by companies “have dropped to almost a yearly low.”
The slowdown in cryptocurrency purchases signals the sector’s wariness toward cryptocurrencies.
Not everyone gives up
Duong noted that BitMine Immersion Technologies, a company that invests in ether, has been the “only consistent buyer” since the market fell sharply. As of October 10, it has spent over $1.9 billion to purchase nearly 483,000 ETH.
Therefore, the company was not discouraged by the fact that the price of ether dropped as much as bitcoin. The ETH/BTC pair bled even harder than BTC/USD.
Actually, BitMine’s strategy is logical: if the company is thinking about investing in ETH for the long term, it is profitable to buy the lows, not invest at the top.
The key question is whether the bull market is still going strong. In my opinion, the answer to this question is yes. So far, bitcoin and altcoins have been rising in price at high interest rates. in the background. Tomorrow, on October 29, the Fed will decide on another cut. There are many indications that the cuts will continue at least until the end of the year. Moreover, Jerome Powell has already signaled that we are approaching the end of quantitative tightening, and therefore – in the long run – also to potential easing, which will translate into jumps in the valuation of cryptocurrencies as assets considered risky.
At the end of the year, Donald Trump is also expected to announce the name of Powell’s potential successor at the Fed. The Federal Reserve’s policies under Trump could also fuel gains, as the president has long been pushing for more aggressive rate cuts.
