Crypto: Bitcoin Treasuries Log Rare Selling Streak As BTC Trades Near $66k

Continued selling from treasury companies and US Bitcoin ETFs threatens a deeper retracement for BTC, but some analysts see it as a sign of a healthy flush in speculative leverage.

Corporate Bitcoin treasury companies posted a rare three-week selling streak, a shift analysts say could deepen Bitcoin’s pullback if fresh demand doesn’t emerge.

Bitcoin (BTC) treasury companies logged three consecutive weeks of selling, according to Capriole Investments’ Bitcoin Treasuries buy and sell indicator shared by educational platform Coin Bureau. The metric tracks net buying and selling by public companies that hold Bitcoin on their balance sheets.

It marked the first three-week selling streak in the short history of BTC treasury companies. Continued corporate selling threatens to push Bitcoin’s price toward a new ”bear market low,” said Nic Puckrin, co-founder and lead market analyst at Coin Bureau.

”As contagion increases, we could see further corporate selling in the weeks to come, pushing the price of Bitcoin toward its bear market low,” Puckrin told Cointelegraph. He added that the segment could also see consolidation if weaker firms struggle to maintain their treasury strategies.

Still, Puckrin said a deeper drawdown could prove constructive in the long run by clearing out leveraged positioning and speculative holders, helping reset market structure.

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The top 20 biggest corporate Bitcoin holders have not reported recent sales, but some smaller companies have been reducing their BTC holdings, including Cango Inc., Exodus Movement and Genius Group, according to data from Bitcoin Treasuries.

China-based publicly traded company Cango, the 27th largest holder, reduced its Bitcoin holdings by more than 54% over the past two weeks, from 8,095 BTC on Feb. 8 to 3,644 BTC worth $246 million as of Monday.

US-based digital asset management and custody company Exodus Movement, the 41st-largest public holder, reduced its corporate holdings from 1,704 on Feb. 11 to 1,694 BTC, worth $114 million on Monday.

Source: CoinTelegraph