Bitcoin News Today: Institutional Caution Halts Crypto Giants' Bitcoin, Ether Buying Spree

Public companies that buy and hold Bitcoin and Ether have largely halted their accumulation efforts since the crypto market's sharp correction in early October, signaling a waning confidence in the sector's short-term outlook. According to Coinbase Institutional's David Duong, Digital Asset Treasury (DAT) firms—typically large players with deep liquidity—have "ghosted" the post-October 10 drawdown, with Bitcoin (BTC) buying by these entities falling to year-to-date lows. This pause reflects broader caution as crypto treasury companies' valuations increasingly align with their asset holdings, while stock prices have cooled from earlier highs, according to a Cointelegraph report.

The October 10–11 crash erased nearly $19 billion in leveraged positions, triggering a wave of liquidations and eroding speculative momentum. BitMine Immersion Technologies, one of the few consistent buyers of Ether (ETH) during the downturn, has spent over $1.9 billion to acquire nearly 483,000 ETH since the crash. However, Duong warned that if BitMine slows its purchases, the "apparent corporate bid" for crypto could fade, leaving the market more vulnerable to volatility, the report noted.

The broader crypto landscape has shifted toward fundamentals as investors pivot from speculative altcoins to utility-backed projects. Bitget CEO Gracy Chen declared the 2025 "altseason"—a period of altcoin rallies—effectively over, citing a collapsed risk-reward profile for trading smaller tokens. She noted a growing preference for projects tied to revenue-generating models like real-world asset platforms and payment networks, signaling a departure from the "casino era" of speculative trading, according to Yahoo Finance.

Meanwhile, geopolitical developments have further complicated the outlook. The easing of U.S.-China trade tensions, including a framework agreement to avoid 100% tariffs on Chinese goods, has reignited risk appetite in crypto markets. Analysts suggest this could drive capital back into high-risk assets like Bitcoin, with on-chain data showing a rebound in large transactions and stablecoin liquidity, as highlighted in a Bitget report.

However, institutional caution persists. The Digital Asset Treasury model, once a cornerstone of crypto's bull cycle, faces scrutiny as most recent DAT token deals involve in-kind swaps rather than organic demand. BitMine's CEO Thomas Lee emphasized the company's progress toward acquiring 5% of ETH's supply, but he acknowledged that the market is still healing from the October deleveraging event. With open interest for ETH at pre-crash levels, the path to a sustained recovery remains uncertain, according to a Morningstar release.

Political developments, such as President Trump's pardon of Binance founder Changpeng Zhao, have also injected optimism. The move, framed as a victory for crypto-friendly policies, has boosted prices for Bitcoin, Ethereum, and Binance's native token (BNB). Yet, analysts caution that macroeconomic factors—including inflation, interest rates, and the U.S. dollar's strength—will ultimately shape crypto's trajectory in 2026, as noted in a Yahoo article.

As the market navigates these crosscurrents, the absence of major DAT buyers and lingering leverage risks highlight a fragile environment. Duong urged investors to adopt a "cautious positioning" in the short term, noting that the sector's resilience will depend on whether institutional demand reemerges and whether regulatory clarity supports long-term growth, the Cointelegraph report added.

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