Bitcoin investors have seriously contrasting views on “buying the dip” at current levels, with treasuries adding while ETFs reduce BTC exposure.
Markets News
Key points:
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Bitcoin corporate treasuries added 630 BTC to start the week, continuing a month-long inflow trend.
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The move contrasts with an ongoing sell-off among the Bitcoin ETFs, which sold nearly $300 million Monday.
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Not everyone is bearish about “buying the dip” at current levels.
Bitcoin () corporate treasuries added over 600 BTC Monday despite crypto market nerves.
Data from quantitative digital asset fund confirmed that corporate buyers are ignoring the BTC price dip.
Bitcoin treasuries buck ETF sell-off trend
Bitcoin is still a solid “buy” for some market participants, even as many, including institutional investors, rush for the exit.
Capriole data shows that on Monday, corporate Bitcoin treasuries added about 630 BTC ($72 million).
The figure marks a new August high, and reflects a divergence in sentiment between treasuries and other large-scale investors.
The same day, the US spot Bitcoin exchange-traded funds (ETFs) saw a . The largest ETF, BlackRock’s iShares Bitcoin Trust (IBIT), shed $292.2 million in one of its .
Capriole reveals corporate treasury interest , meanwhile, with the biggest day, July 21, seeing buys of over 26,700 BTC ($3 billion).
Commenting on the data, Capriole founder Charles Edwards noted that on the rare occasions that treasuries see large outflows, local BTC price bottoms are nearby.
“Every time Bitcoin treasury companies’ daily sales have exceeded 1,500 over the last cycle, it’s been at the local price lows, i.e., a buy signal,” he told X followers Tuesday.
The last time that such outflows were recorded was on March 31, when treasuries sold over 1,700 BTC ($194 million). BTC/USD fell to lows of $74,500 about one week later.
ETF analyst shrugs off market “dooming”
As , expectations were high for Monday’s ETF results, with trading firm QCP Capital saying they would dictate the short-term market mood.
Related:
“If inflows resume and vol metrics begin to compress, it would provide stronger evidence that current conditions may support a buy-the-dip narrative,” it concluded in a bulletin to Telegram channel subscribers.
For Bloomberg ETF analyst Eric Balchunas, however, current conditions could constitute a classic opportunity.
“Lot of dooming going on, but don’t be surprised if traders buy the dip,” he on X alongside a chart of dip-buying returns.
“Why? Because it works- and has had for literally DECADES.”
Lot of dooming going on, but don’t be surprised if traders buy the dip. Why? Because it works- and has had for literally DECADES. Here’s a look at the avg weekly returns after a dip. Not as good a pop as it produced in 2021 and the ’90s, but still positive.
— Eric Balchunas (@EricBalchunas)
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
