Metaplanet’s Bitcoin gains fall 39% as October crash pressures corporate treasuries

💡 DMK Insight

Corporate Bitcoin treasuries are feeling the heat as Bitcoin dips below acquisition costs, and here’s why that matters: When Bitcoin drops under the average acquisition cost for treasury firms, it raises serious questions about their holding strategies. Many companies might be forced to reevaluate their positions, potentially leading to increased selling pressure. This could create a cascading effect, not just on Bitcoin but also on correlated assets like Ethereum and other cryptocurrencies, as sentiment shifts. Traders should keep an eye on the $25,000 level for Bitcoin, as a sustained drop below this could trigger further sell-offs and panic among institutional holders. But there’s a flip side: if these treasury firms decide to hold through the downturn, it could signal confidence in Bitcoin’s long-term value. This could stabilize prices in the short term, but it’s a risky game. Watch for any announcements from these firms regarding their strategies, as they could provide insight into market sentiment and future price movements.