Bitcoin Treasury Company Bids
Bitcoin Treasury Companies are springing up left, right, and centre, creating a major structural bid for Bitcoin. However, they are also very likely to play a roll in the unwind when times get tough.
G’day Folks,
I’ve just landed back in Australia after my trip to Seoul, and it looks like Bitcoin has taken another run at the ATH while I was in the air.
By far, the biggest theme of the Bitcoin Seoul conference was the emergence of Bitcoin Treasury companies, and they seem to be popping up everywhere.
I had many conversations with Bitcoiners about this, and the common thread was a mixture of fascination at the major structural bid they represent for BTC…
…and clear concern that many of them are almost certainly going to blow up eventually, creating and/or worsening the next bear market.
This is more or less my conclusion too, as not every CEO will have the grit to weather a bear, nor the reputation and size which Saylor does at Strategy.
Nevertheless, the trend of Bitcoin Treasury companies is early, but clearly accelerating, introducing a non-trivial source of buy side demand for Bitcoin above $100k.
Today, I’m going to run through a few key sectors of the market to assess the health of this rally. I’m going to focus on:
The bid coming from both ETFs and Bitcoin Treasury Companies.
How over/under heated the market is today.
Sell-side pressure which is counter-acting the move higher.
The build up of leverage in derivatives markets.
📈 Reminder: you can find the charts from our articles on the Checkonchain Charting Website, and a guide in our Charts Tutorial Video.
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