Bitcoin drops below $110,000, while treasuries slow down acquisitions
Glassnode analysts wrote that “the market is in a reset phase.”
Bitcoin is struggling to regain ground, and dropped below $110,000 early Thursday morning. The asset is down roughly 10% in the past week and 11.5% since its October 6 all-time high of just over $126,000. Tariff battles coupled with domestic and geopolitical uncertainty continue to put pressure on bitcoin, almost a week after the historic $19 billion wipeout.
Glassnode analysts wrote that, coupled with weak bitcoin ETF inflows and acute volatility, “the market is in a reset phase, characterized by flushed leverage, cautious sentiment, and recovery hinging on renewed demand.”
They continued, “Without a renewed catalyst to lift prices back above $117.1k, the market risks deeper contraction toward the lower boundary of this range.”
Bitcoin ETFs are also suffering and saw $104.1 million in outflows on Wednesday, while digital asset treasuries (DATs) are seeing a significant slowdown of bitcoin acquisitions.
CoinDesk reported that the seven-day moving average of net daily inflows into bitcoin DATs “recently dropped to 140 BTC, marking the lowest level since mid-June and a sharp decline from a July peak of 8,249 BTC.”
The latest two bitcoin acquisitions from Strategy, which with 640,250 bitcoin is the largest corporate bitcoin holder, were some of the smallest ones since it started accumulating bitcoin: 220 and 196 bitcoin.
DATs’ total bitcoin holdings have now crossed the 1 million mark, with 91% held in US companies. The holdings also represent almost 5% of the total supply. In a prescient August note, “How DATs die,” NYDIG flagged some warning signs.
“Where a DAT gets into trouble is when it cannot generate and sustain a sufficient premium to NAV [net asset value] — it loses its main avenue to increase its crypto per share. How does this happen? Either it fails to generate sufficient memetic premium or investors sell shares, forcing the premium to NAV to collapse,” according to NYDIG.
Indeed, following Nakamoto and several other DATs, Metaplanet is the latest one whose NAV has dropped below 1, as its enterprise value fell below its bitcoin holdings.
