Latest news with #FTX-related
CNBC
a day ago
- Business
- CNBC
Strategy imitators pushed bitcoin to new records. Why Standard Chartered sees that buying pressure reversing
The number of companies that buy bitcoin to hold on their balance sheet has grown in recent weeks, helping the leading cryptocurrency to hit its recent all-time high. But that newfound corporate support could soon become a downside risk to bitcoin's price, according to Standard Chartered. While Strategy , formerly MicroStrategy, is the poster child for the bitcoin acquisition strategy by corporate treasuries, "imitators" have been gaining ground, Standard Chartered said in a report out Tuesday. Holdings by bitcoin treasuries have doubled in the last two months to just below 100,000 bitcoins, but their average purchase prices are far higher than Strategy's in most cases, the note said. Reversal risk "Bitcoin treasuries are adding to bitcoin buying pressure for now, but we see a risk that this may reverse over time," Standard Chartered analyst Geoff Kendrick wrote. "Most of the bitcoin corporate treasuries in our sample … have [net asset value] multiples above 1. For now, we think this is justified by market inefficiencies, including regulatory hurdles to investor access and conservative investment committee processes. But as these inefficiencies are eventually removed, we think bitcoin treasuries could become a source of downside price pressure and volatility." Bitcoin's notorious volatility could well push its price below the average paid by many corporate treasury departments reasury, Kendrick added. Half of them would be underwater if bitcoin fell below $90,000, he estimated. Should bitcoin drop more than 22% below companies' average purchase prices, they could become forced sellers, he said. Pain threshold "The question then becomes, how much pain can companies withstand before being forced to sell their bitcoin?" Kendrick said, noting that Strategy's treasury faced its greatest challenge in November 2022, around the time of the FTX-related crash. Bitcoin halved in value, to $15,500 from $31,000, but the company continued holding its bitcoin throughout. "Perhaps because the absolute [dollar] loss was small," Kendrick suggested, "and also because U.S. spot [bitcoin] ETFs did not exist yet, so MSTR served a more important investment purpose than bitcoin treasuries do today." In today's altered crypto environment, "we do not think any of the newer entrants to the bitcoin treasury space could continue holding their bitcoin if bitcoin prices were to fall 50% below their average purchase price," the analyst added. There are 110 publicly-listed companies worldwide that own bitcoin, according to Bitcoin Treasuries. Standard Chartered monitors a sample of 61 that buy bitcoin purely to hold on their balance sheets but otherwise aren't involved in the industry. This, for example, excludes bitcoin miners, crypto exchanges, asset managers, Bitcoin ATM providers, crypto services providers and Tesla. The subgroup that Standard Chartered tracks owned a combined 673,897 bitcoins as of the end of May, accounting for 3.2% of bitcoin's maximum supply of 21 million. —CNBC's Michael Bloom contributed reporting. remains the biggest of these types of bitcoin proxies, its
Economic Times
27-05-2025
- Business
- Economic Times
Crypto Prices Today: Bitcoin slips below $110,000 amid profit booking; Altcoins fall up to 5%
Bitcoin price today: Traders are monitoring macro developments such as the delayed U.S. tariffs on EU imports and potential crypto regulations. Bitcoin price today: Bitcoin slipped below $110,000 amid profit booking, while altcoins declined up to 5%, reflecting cautious sentiment. Despite short-term weakness, institutional interest remains strong with steady ETF inflows and major purchases. Analysts view the dip as consolidation, with BTC support at $105,200 and resistance at $111,000. Market watchers are also eyeing regulatory developments and FTX-related liquidity events. Tired of too many ads? Remove Ads Crypto TrackerPowered By TOP COINS TOP COIN SETS Ethereum 2,23,745 ( 1.92 %) Buy BNB 58,219 ( 1.41 %) Buy Tether 85.42 ( 0.37 %) Buy Bitcoin 93,68,394 ( 0.12 %) Buy XRP 197.23 ( -1.45 %) Buy Bitcoin and other major cryptocurrencies were trading lower on Tuesday, reflecting cautious sentiment among traders despite continued institutional interest in the digital asset of 12:49 PM IST, Bitcoin dropped 0.7% to $1,09,153, after briefly touching a high of $110,376. Ethereum also edged lower, down 0.11% to $2,583. The global cryptocurrency market capitalisation declined by 1% to $3.42 trillion, according to CoinMarketCap.'Bitcoin briefly reclaimed the $110,000 mark before seeing some profit-taking at higher levels,' said Alankar Saxena, Co-founder and CTO of Mudrex. He added that despite the dip, market makers remain confident as Bitcoin options trade at a negative 6%—a pattern typically seen in bullish conditions. BTC faces resistance at $111,000 and support around $105,200, he Thakral, CEO of BuyUcoin, echoed the sentiment, saying, 'The reason for the current dip might be profit booking by short-term traders who liquidated their positions to create fresh ones.'Despite the short-term weakness, analysts pointed to sustained institutional interest. Vikram Subburaj, CEO of Giottus, noted that while Bitcoin triggered $185 million in long liquidations on Binance in the past week, 'spot ETF inflows remain strong' and options data 'point to a market driven by demand and not leverage.''Recent moves like Strategy's $427 million Bitcoin purchase and JPMorgan opening access to Bitcoin ETFs signal growing institutional conviction,' he Exchange Research Analyst Riya Sehgal also highlighted continued ETF inflows. 'Bitcoin's uptrend remains intact with higher highs and higher lows. The market is consolidating near the $110,000 level, awaiting a decisive breakout or breakdown. Meanwhile, Ethereum is range-bound between $2,450 and $2,750,' she traded broadly in the red. Solana dropped 2.2%, Cardano 1.2%, Dogecoin 1.4%, Sui 5.2%, Avalanche 1.6%, XRP 2.6%, and Hyperliquid 4.4%.Bitcoin's dominance rose to 63.2%, with its market cap at $2.169 trillion. Daily trading volume, however, jumped 10.6% to $49.19 to the cautious sentiment, traders are monitoring macro developments such as the delayed U.S. tariffs on EU imports and potential crypto regulations. 'The U.S. Senate is expected to vote on the GENIUS Act, which could influence innovation in the sector,' said second round of repayments could also inject liquidity into the market, potentially boosting trading activity.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
