Crypto’s baseline demand weakens as companies reduce their purchases of BTC and ETH

Bitcoin and

treasury acquisitions have seen a significant drop toward the end of 2025, which has led to increased market turbulence and falling prices among leading digital assets. The appetite from corporations for plummeted by 76% in August compared to July, with companies only buying 12,600 BTC in August and 15,500 BTC in September—both figures well below July’s 64,000 BTC, as reported by CryptoQuant. Ethereum experienced similar declines, further intensifying downward price momentum. By late September, Bitcoin slipped under $109,000 for the first time since the start of the month, and Ethereum along with other altcoins also suffered notable losses. Experts point to the fading of a crucial demand base, previously maintained by institutional investors, as a key factor behind the selloff title1 [ 1 ].

The reduction in corporate treasury activity has triggered a cycle of risk aversion and forced sales. Joe DiPasquale, CEO of BitBull Capital, observed that the lack of consistent corporate buying weakens trust in the “balance-sheet-as-strategy” approach, hastening the decline in prices title2 [ 2 ]. Michael McCluskey from Sologenic remarked that the drop in purchases corresponds with softer prices, as corporate involvement had been a major stabilizing force during the summer’s rally title3 [ 3 ]. This trend has also affected stock markets: shares of Bitcoin-centric companies such as Helius Medical Technologies and BitMine Immersion fell by 38% and 13% respectively in the past week, while

(previously MicroStrategy) and Metaplanet both declined by 9% despite recent substantial BTC acquisitions title4 [ 4 ].

Heightened regulatory attention has added further strain to corporate treasury tactics. According to The Wall Street Journal, financial authorities are probing unusual trading activity and sharp share price increases among crypto-related companies title5 [ 5 ]. Markus Thielen from 10x Research pointed out worries about unclear acquisition costs and dilution from private placements (PIPEs), which have led to a sharp drop in market-to-NAV ratios for many treasury-focused firms title6 [ 6 ]. This regulatory scrutiny, combined with broader economic challenges like inflation and a robust U.S. dollar, has heightened risk-off behavior, especially in leveraged derivatives markets title7 [ 7 ].

Traders are now preparing for a massive $23 billion Bitcoin and Ethereum options expiration at the end of September, one of the largest such events in crypto’s history. Analysts caution that the heavy clustering of puts and calls near key strike prices—$114,000 for Bitcoin and $4,500 for Ethereum—could spark sharp price swings as positions are adjusted title8 [ 8 ]. The put-to-call ratios for Bitcoin (1.23) and Ethereum (0.99) indicate a mixed outlook, with both bearish and bullish expectations, and market makers are expected to ramp up hedging as expiry nears. This volatility could spread to DeFi platforms, altcoins, and overall market sentiment, potentially revealing liquidity issues in a market already weakened by lower corporate participation title9 [ 9 ].

Although the market is currently experiencing a selloff, some experts remain cautiously hopeful about Bitcoin’s prospects over the long term. Gerry O’Shea of Hashdex believes Bitcoin could climb to $140,000 by year’s end, fueled by renewed corporate treasury interest and eventual improvement in macroeconomic conditions. Still, this optimism stands in contrast to the present environment, where institutional caution and regulatory headwinds are prevalent. Potential rate cuts by the Federal Reserve later this year could make holding non-yielding assets like Bitcoin more attractive, but investors will need to weather short-term instability before these factors can have an impact.

The wider effects of the slowdown in treasury activity underscore the crypto sector’s growing ties with traditional finance. While corporate demand once shielded digital assets from broader economic pressures, its retreat has exposed weaknesses in leveraged and speculative positions. This period has also highlighted the necessity for clearer regulations, with both the U.S. GENIUS Act and the EU’s MiCA framework aiming to provide oversight for stablecoins and enhance investor protections. As the market works through this correction, institutional adoption of crypto is expected to continue, though with a greater emphasis on regulated offerings and transparent practices.