BTCC / BTCC Square / Bitcoin News /
Bitcoin Market Dynamics Under Scrutiny as Treasury Firms Face Selling Pressure Allegations

Bitcoin Market Dynamics Under Scrutiny as Treasury Firms Face Selling Pressure Allegations

Published:
2025-11-25 12:02:18
22
1
[TRADE_PLUGIN]BTCUSDT,BTCUSDT[/TRADE_PLUGIN]

Recent analysis by blockchain expert Omid Malekan reveals concerning patterns in Bitcoin's price behavior, pointing to crypto treasury firms as significant contributors to the cryptocurrency's downward momentum. According to Malekan, who serves as both a blockchain author and Columbia Business School professor, these specialized financial institutions have employed aggressive strategies that inadvertently amplify market declines. The core issue lies in their operational approach: many treasury firms built substantial Bitcoin positions using leveraged purchases and capital raised through share sales, creating structural vulnerabilities that become apparent during market stress periods. This leveraged expansion model means that when Bitcoin prices begin to decline, these firms face mounting pressure to sell assets to cover their positions, thereby accelerating the downward trend. The situation is further complicated by what Malekan describes as 'planned bulk exits' - predetermined selling strategies that can create concentrated sell pressure at inopportune moments. These dynamics represent a significant shift from Bitcoin's traditional market structure, where individual investors and long-term holders typically dominated trading activity. The involvement of professional treasury firms, while bringing institutional credibility to the cryptocurrency space, has introduced new systemic risks that were previously less pronounced. Market observers note that this development highlights the growing complexity of cryptocurrency markets as they mature and attract more sophisticated financial players. The allegations also raise important questions about risk management practices within the crypto treasury sector and whether current regulatory frameworks adequately address the potential for concentrated selling pressure to destabilize markets. As Bitcoin continues its evolution from niche digital asset to mainstream financial instrument, understanding and mitigating these new forms of market risk will be crucial for both investors and regulators seeking to ensure market stability while preserving the innovative potential of cryptocurrency technologies.

Crypto Treasury Firms Accused of Exacerbating Bitcoin's Price Decline

Omid Malekan, a blockchain author and Columbia Business School professor, alleges that crypto treasury firms are amplifying Bitcoin's recent price drops through aggressive selling strategies. These companies reportedly built positions using Leveraged purchases and capital from share sales, creating vulnerability during market downturns.

The sell pressure stems from debt-fueled expansion models and planned bulk exits, according to Malekan. He describes this pattern as 'the gangrene of crypto' - where short-term profit motives override ecosystem growth. Few treasury operations appear focused on long-term value creation.

Mass token releases and forced liquidations are creating disproportionate downward pressure on digital assets. Malekan warns this behavior erodes market confidence while calling for greater corporate accountability in treasury management.

CryptoAppsy Emerges as Essential Real-Time Trading Tool for Multilingual Investors

CryptoAppsy has positioned itself as a critical resource for crypto traders navigating volatile markets. The lightweight application delivers real-time price data across thousands of assets—from Bitcoin to emerging altcoins—with updates every five seconds. Its multilingual interface (Turkish/English/Spanish) and account-free access cater to global mobile traders.

The platform's algorithmic data aggregation scans global exchanges for arbitrage opportunities, while personalized portfolio tracking eliminates noise. A unique panel system auto-curates watchlists, holdings, and asset-specific news feeds. Early adopters reward these features with perfect 5.0 ratings, particularly praising the app's price alert precision and discovery tools for new coins.

MicroStrategy's Bitcoin Holdings Safe from Liquidation in Bear Markets, Says Willy Woo

MicroStrategy's $1.01 billion convertible debt structure eliminates the need to liquidate bitcoin holdings during market downturns, according to analyst Willy Woo. The firm's 2027 senior notes allow repayment flexibility through cash, stock, or a hybrid—contingent on maintaining a share price above $183.19.

This threshold implies Bitcoin must sustain a value near $91,502 to avoid forced sales. Woo's analysis counters bear market liquidation fears, highlighting MicroStrategy's strategic positioning. The company's equity-linked debt instruments now serve as a buffer against crypto volatility.

Cryptocurrency Market Shifts as Fed Policy Outlook Brightens

Bitcoin's surge past $104,000 masks underlying market tensions. Analysts note Federal Reserve Chair Powell's overlooked December remark signaling an end to asset sales and impending liquidity expansion. While short-term bond purchases may initially have muted effects, the policy shift is expected to fuel risk assets in coming months.

Noted analyst Mister Crypto has reversed his bearish stance, citing the Fed's imminent transition from quantitative tightening to easing. The coming liquidity cycle—marked by halted rate hikes and resumed QE—creates a perfect storm for crypto assets. "It's becoming impossible to stay pessimistic," he observed, as macroeconomic conditions align for sustained upward momentum.

Sequans Shares Plunge 16% After Strategic Bitcoin Sale Halves Company Debt

Sequans Communications saw its shares tumble 16% following the sale of nearly 1,000 Bitcoin to reduce its convertible debt burden. The semiconductor firm liquidated 970 BTC, cutting its holdings from 3,234 to 2,264 BTC while slashing its $189 million debt obligation by 50%.

CEO Georges Karam framed the MOVE as a tactical balance sheet optimization, emphasizing the company's continued commitment to Bitcoin as a reserve asset. "This strategic reallocation unlocks shareholder value in current market conditions," Karam stated, noting the transaction preserves financial flexibility while maintaining core crypto exposure.

The market reaction was severe, with shares closing at $5.92 - down 89% from yearly highs. Analysts suggest investors may be interpreting the partial divestment as a signal of cash FLOW pressures, despite management's bullish long-term crypto stance.

Bitcoin Targets $143,700 as BullZilla Presale Gains Momentum

Bitcoin's dominance persists as the crypto market's cornerstone, with price predictions now eyeing $143,700 amid growing ETF inflows and institutional adoption. Meanwhile, BullZilla's presale emerges as a high-growth alternative, offering tokens at $0.00527 before exchange listings.

The market bifurcates between Bitcoin's steady store-of-value proposition and presale projects promising exponential returns. BullZilla's 4.43 million token allocation precedes a 2.95% price hike, attracting investors seeking early-stage opportunities beyond BTC's measured ascent.

|Square

Get the BTCC app to start your crypto journey

Get started today Scan to join our 100M+ users

All articles reposted on this platform are sourced from public networks and are intended solely for the purpose of disseminating industry information. They do not represent any official stance of BTCC. All intellectual property rights belong to their original authors. If you believe any content infringes upon your rights or is suspected of copyright violation, please contact us at [email protected]. We will address the matter promptly and in accordance with applicable laws.BTCC makes no explicit or implied warranties regarding the accuracy, timeliness, or completeness of the republished information and assumes no direct or indirect liability for any consequences arising from reliance on such content. All materials are provided for industry research reference only and shall not be construed as investment, legal, or business advice. BTCC bears no legal responsibility for any actions taken based on the content provided herein.