Why Is Bitcoin Treasury Strategy Already Over?
According to a cryptocurrency specialist, Bitcoin’s hoarding tactic might not persist as long as many people think. He cautioned that quick profits might already be a thing of the past as more businesses enter the market.
My instinct is the Bitcoin treasury strategy has a far shorter lifespan than most expect. For many new entrants, it could already be over,
Glassnode lead analyst James Check
Check goes on to say that when it comes to long-term Bitcoin accumulation, the focus is on how sustainable a company’s product and strategy are, not on a contest. According to him, investors are favoring early adopters, making it harder for newer Bitcoin treasury startups to succeed.
Nobody wants the 50th Treasury company. I think we’re already close to the ‘show me’ phase, where it will be increasingly difficult for random company X to sustain a premium and get off the ground without a serious niche.
Check
Analyst Warns Bitcoin Treasury Strategies May Not Last Forever
BitcoinTreasuries data shows that at least 21 companies added Bitcoin as a reserve asset in the 30 days prior to Friday. Michael Saylor’s Strategy (MSTR), the biggest public Bitcoin treasury, has 597,325 BTC, while MARA Holdings is the second-largest, with 50,000 BTC. Retail speculators are drawn to new Bitcoin treasury firms, according to Check. He cautions that they do not have limitless funds, though.
Additionally, Check acknowledged that while he is bullish on the price of Bitcoin, it is difficult to place a time limit on the decline for the more recent companies. As an example, Strategy has more runway than the 300th firm to join the market with a Bitcoin treasury, he explained, indicating that it’s a spectrum.
Bitcoin Treasury Bubble: Weak Firms Could Be Snapped Up by Stronger Players
Check stated that he shared the opinion of Udi Wizardheimer, co-founder of Taproot Wizards, that some businesses are utilizing a Bitcoin treasury approach to generate short-term gains without properly comprehending their long-term goals. He asserts that the larger Bitcoin players might buy out the weaker ones.
Many of the folks raising just see easy money and have no idea what they’re doing. I think it’ll take them some time to figure out. The weak ones might be acquired at a discount by the strong ones, and the trend could still have a few more legs in it.
Wizardheimer
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