In the rapidly shifting landscape of cryptocurrency markets, Bitcoin treasury demand is showing signs of weakening, as highlighted in a recent report by CryptoQuant. Despite Bitcoin treasury companies holding unprecedented amounts in their digital reserves, the appetite for large-scale purchases appears to be tapering. This trend was a hot topic at the recent BTC Asia conference held in Hong Kong, where market insiders pondered the implications for the digital currency’s future.
A Record Year, but Smaller Bites
CryptoQuant’s data paints a picture of divergence within the Bitcoin treasury sector. While the cumulative BTC holdings have soared to 840,000 BTC this year, the size of individual transactions has notably diminished. For instance, Strategy, a leading player in the space, averaged just 1,200 BTC per purchase in August, a stark contrast to the robust transaction volumes seen earlier in the year. Meanwhile, other firms managed an average of 343 BTC per deal. This represents an 86% drop from the highs recorded at the start of 2025, suggesting a cautious approach and possibly liquidity constraints.
Transaction activity remains high, with 53 deals in June and 46 in August, yet the volume per transaction is waning. Strategy’s acquisition of 3,700 BTC in August pales in comparison to its peak purchase of 134,000 BTC last year. Similarly, other treasury firms saw their volumes dip from 66,000 BTC to 14,800 BTC. This reluctance to commit substantial capital reflects a broader market sentiment of caution and could be a harbinger for future price developments.
The Investor’s Dilemma
For investors, the implications are significant. Bitcoin’s price growth in the second quarter was fueled largely by treasury accumulations, according to CoinDesk Indices data. By late August, institutions were snapping up over 3,100 BTC daily, vastly outpacing the 450 BTC mined each day. This created a dramatic 6:1 demand-supply imbalance, propelling Bitcoin’s price upward.
However, the cooling demand from treasuries now casts a shadow over the sustainability of Bitcoin’s price strength. If these entities continue to buy cautiously rather than at scale, the bullish momentum seen earlier this year might not be as enduring as some investors hope.
A Mixed Outlook for Treasury Growth
Despite the shrinking transaction sizes, the sector is not devoid of growth. Notably, Bitwise reported the formation of 28 new treasury companies in July and August alone, collectively adding more than 140,000 BTC to the market. Moreover, Asia is becoming a significant player in this evolution, with Taiwan-based Sora Ventures launching a $1 billion fund aimed at nurturing regional treasury firms. With an initial $200 million commitment, Sora’s fund intends to pool institutional capital to foster multiple new entrants.
This development is a stark contrast to Asia’s largest public treasury firm, Metaplanet, which holds 20,000 BTC. Whether the burgeoning Asian market can counterbalance the hesitancy of existing players remains a pivotal question for Bitcoin’s next adoption phase.
Market Resilience Amidst Uncertainty
Despite these shifts, Bitcoin has maintained resilience, trading within the $110K–$113K range. This stability is supported by expectations of Federal Reserve rate cuts, increasing institutional inflows via ETFs, and an uplift in market sentiment amidst ongoing macroeconomic uncertainties.
Ethereum, on the other hand, is experiencing short-term weakness, trading near the $4,300 mark with a weekly decline of 3.8%. This drop is attributed to ETF outflows and typically subdued trading in September. Nonetheless, Ethereum’s long-term outlook appears positive, driven by growing institutional interest, increased staking activity, and speculative forecasts that eye $4,600–$5,000 if resistance levels break.
Gold is also making headlines, rallying to record levels due to a mix of weak U.S. jobs data, heightened expectations of Fed easing, a soft U.S. dollar, and continued central bank accumulation of bullion. Meanwhile, Asia-Pacific stocks showed strength, with Japan’s Nikkei 225 rising 1.5% following the resignation of Prime Minister Shigeru Ishiba after election pressures.
The Road Ahead
As the crypto world navigates these nuanced dynamics, the future of Bitcoin treasury demand remains a central narrative. The emergence of new players in Asia and the cautious strategy of established firms will play a crucial role in shaping Bitcoin’s trajectory. Whether the current trends signify a temporary pause or a longer-term shift in market behavior, remains to be seen.
In the broader crypto landscape, emerging technologies and strategic investments continue to drive innovation. Chainlink’s CEO recently highlighted tokenization as the sector’s rising future, while SharpLink’s CEO speculated on the potential return of Bitcoin’s enigmatic creator, Satoshi Nakamoto. Furthermore, venture capital bets on prediction markets signal an appetite for new opportunities amidst the ongoing evolution of digital finance.
As the market absorbs these developments, investors and industry stakeholders will keenly watch how these dynamics unfold, shaping the next chapter of the cryptocurrency saga.
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
