Bitcoin News Today: Corporate Bitcoin Reserves Face Volatility Test

BNB Trading Near $810 After Losing 40% From October Peak Amid Heavy Selling

Bitcoin (BTC) has retreated to approximately $86,000 in early December 2025, marking a 31% decline from its October 6 peak of $126,000, according to recent data . This selloff has prompted significant corporate responses, including Strategy (MSTR), the largest institutional holder of Bitcoin, which announced a $1.44 billion U.S. dollar reserve to support dividend payments and mitigate short-term volatility . The company's CEO, Phong Le, outlined a contingency plan to sell Bitcoin holdings if its market-to-net-asset-value (mNAV) ratio-a key valuation metric-falls below 1.0, a threshold that would trigger asset liquidation to maintain financial stability .

The decline in Bitcoin's price has intensified correlations between the cryptocurrency and broader market dynamics. Blockchain analytics firm Glassnode highlighted a "strong negative correlation" between Bitcoin and Tether (USDT) activity over the past two years, noting that net outflows of USDT from exchanges often coincide with Bitcoin price increases . However, recent data shows a reversal, with positive USDT flows accompanying Bitcoin's pullback. This suggests a shift in investor sentiment, with profit-taking and risk-off behavior dominating as the market navigates regulatory uncertainty and macroeconomic headwinds.

Meanwhile, corporate strategies for Bitcoin treasuries are evolving. Massimo (MAMO) recently announced plans to integrate Bitcoin into its long-term treasury reserve strategy, positioning the asset as a strategic reserve rather than a core operating holding . This move aligns with a broader trend among corporations to hedge against fiat currency depreciation and diversify balance sheets. However, the decision underscores the growing complexity of managing Bitcoin exposure in volatile markets.

The selloff has also exposed vulnerabilities in valuation models for Bitcoin-linked equities. Strategy's stock has plummeted 53% year-to-date, with its correlation to Bitcoin rising sharply to 0.97 during the downturn . This near-perfect alignment reflects the market's increasing reliance on Bitcoin's performance to value companies with significant crypto holdings. Analysts warn that further declines in Bitcoin's price could trigger margin calls or forced selling among leveraged investors, exacerbating downward pressure.

Regulatory developments continue to shape the landscape. The U.S. government's passage of the GENIUS Act in July established a framework for payment stablecoins, prompting Tether to launch a new compliant stablecoin, USAT . While these measures aim to enhance transparency, they also introduce operational costs for firms managing crypto assets. For now, the focus remains on short-term stability, with companies like Strategy prioritizing liquidity buffers to weather potential shocks.