“A cornered beast’s struggle”: Crypto Treasury is losing its ability to buy at the bottom.
During the brief rally that began in April, crypto treasury companies acted as the main force behind market buying, providing a continuous stream of ammunition. However, when the crypto market and stock prices both plummeted, these crypto treasury companies seemed to collectively go silent.
When prices reach a temporary bottom, it should be the perfect time for these financial institutions to buy at the bottom. However, in reality, buying activity has slowed down or even stopped. This collective silence is not simply due to depletion of “ammunition” at the peak or panic, but rather a systemic paralysis of the financing mechanism, which heavily relies on premiums, resulting in a “money available but unusable” situation during a downturn.
