Crypto's Demand Floor Crumbles as Firms Slash BTC/ETH Buys

Bitcoin and Ethereum treasury purchases have sharply declined in late 2025, contributing to heightened market volatility and price declines across major cryptocurrencies. Corporate demand for Bitcoin dropped by 76% in August compared to July, with firms acquiring just 12,600 BTC in August and 15,500 BTC in September—less than half the 64,000 BTC purchased in July, according to CryptoQuant. Similar trends were observed for Ethereum, exacerbating downward pressure on prices. Bitcoin fell below $109,000 in late September, marking its first drop below that level since September 1, while Ethereum and altcoins also faced significant losses. Analysts attribute this selloff to the removal of a key demand floor previously propped up by institutional accumulationtitle1^[1].

The slowdown in corporate treasury buying has created a feedback loop of risk-off sentiment and forced liquidations. Joe DiPasquale, CEO of BitBull Capital, noted that the absence of steady corporate demand undermines confidence in the "balance-sheet-as-strategy" narrative, accelerating price declinestitle2^[2]. Michael McCluskey of Sologenic added that the reduction in purchases aligns with softer prices, as corporate demand had been a critical driver of market stability during the summer rallytitle3^[3]. This dynamic has also impacted equity markets: shares of Bitcoin-focused firms like Helius Medical Technologies and BitMine Immersion fell by 38% and 13%, respectively, over the past week, while Strategy (formerly MicroStrategy) and Metaplanet dropped 9% despite recent large BTC purchasestitle4^[4].

Regulatory scrutiny has further intensified pressure on corporate treasury strategies. The Wall Street Journal reported that financial regulators are investigating unusual trading volumes and share price surges among crypto-focused firmstitle5^[5]. Markus Thielen of 10x Research highlighted concerns about opaque acquisition pricing and dilution effects in private placement deals (PIPEs), which have contributed to a collapse in the market-to-NAV multiples for many treasury firmstitle6^[6]. This regulatory focus, combined with macroeconomic uncertainties such as inflation and a strong U.S. dollar, has deepened risk aversion, particularly in leveraged derivatives marketstitle7^[7].

Market participants are now bracing for a $23 billion Bitcoin and Ethereum options expiry event in late September, one of the largest in crypto history. Analysts warn that the concentration of put and call options around key strike prices—$114,000 for Bitcoin and $4,500 for Ethereum—could trigger sharp volatility as traders adjust positionstitle8^[8]. The put-to-call ratio for Bitcoin (1.23) and Ethereum (0.99) suggests a mixed bearish-bullish sentiment, with market makers likely to intensify hedging activities as expiry approaches. This volatility could ripple through DeFi protocols, altcoins, and broader investor sentiment, potentially exposing liquidity risks in a market already strained by reduced corporate demandtitle9^[9].

Despite the near-term selloff, some analysts remain cautiously optimistic about Bitcoin’s long-term trajectory. Gerry O’Shea of Hashdex predicts Bitcoin could reach $140,000 by year-end, driven by corporate treasury adoption and eventual stabilization in macroeconomic conditions. However, this optimism contrasts with the current environment, where institutional caution and regulatory pressures dominate. The Federal Reserve’s potential rate cuts by year-end could reduce the opportunity cost of holding non-yielding assets like Bitcoin, but market participants must navigate short-term turbulence before such fundamentals take effect.

The broader implications of the treasury slowdown highlight the crypto market’s evolving integration with traditional finance. While corporate demand had previously insulated cryptocurrencies from macroeconomic headwinds, its withdrawal has exposed vulnerabilities in leveraged positions and speculative strategies. The period has also underscored the need for regulatory clarity, with both the U.S. GENIUS Act and EU MiCA frameworks aiming to establish stablecoin oversight and investor protections. As the market navigates this correction, the long-term institutional adoption of crypto is expected to persist, albeit with a more selective focus on regulated products and transparent strategies.