Public Companies Are Accumulating, Yet What’s Causing BTC and Crypto to Decline Today?
Companies in the public sector such as Tether and Strategy are accumulating Bitcoin, yet what is causing the decline in crypto and BTC prices? Bitcoin USD is trending towards $80,000, potentially affecting even the most successful meme coins and top altcoins.
Recenton-chain information indicates that U.S. public companies have been aggressively acquiring BTC during the first quarter of 2025. Analysts remark that these corporate behemoths collectively acquired 91,781 BTC in the year’s initial three months.
In spite of their commitment to reinforcing the value of the world’s most precious coin, BTC plummeted by double digits from its peak of nearly $110,000, dipping below $78,000 by March 2025.
If this trend continues, there’s a tangible risk of the coin retesting the 2021 peak of $74,000. Should the bears continue to push, driving the most valuable crypto token to $50,000, several of the top meme coins may also experience pressure.
(BTCUSDT)
Given these circumstances, investors need to ask critical questions: Who are the major entities purchasing BTC, and why is Bitcoin still declining?
Public Companies Acquiring Bitcoin is the Major Trend for 2025
In Q1 2025, analysts referencing CryptoQuant data noted that Tether, the issuer of the globe’s most liquid stablecoin, USDT, acquired 8,888 BTC, increasing their reserves to over 100,000 Bitcoin, as per Arkham data.
While Tether’s BTC purchases may be a tactical move, utilizing it as a primary defense in case of a USDT depeg over the weekend, their choice to accumulate BTC rather than other altcoins strongly endorses digital gold.
Over time, Tether has played a pivotal role in facilitating adoption and enabling traditional finance players to transition effortlessly into crypto through a stable coin that now acts as a medium of exchange for millions, especially in developing nations. With USDT, individuals globally can participate, even investing in some of the most sought-after presale tokens in 2025.
Alongside Bitcoin, Tether possesses U.S. Treasuries and other cash equivalents, which are leveraged to support USDT.
While Tether is a major Bitcoin player to watch, Strategy, previously known as MicroStrategy, stands as the largest institutional BTC holder. In Q1 2025, Strategy allocated a portion of its debt to acquire even more Bitcoin, adding an impressive 81,785 Bitcoin in just the first quarter.
Remarkably, Strategy invested over $8 billion into Bitcoin purchases, reinforcing its status as a BTC advocate, a sentiment shared by its founder, Michael Saylor.
MicroStrategy is the public equity play on #Bitcoin Maximalism. pic.twitter.com/96lpcdN5Zi
— Michael Saylor
Among other companies that have purchased BTC are the Blockchain Company, which increased its balance sheet by 605 BTC; Semler Scientific, acquiring 1,108 BTC; and Metaplanet, which added 2,285 BTC.
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Additionally, Marathon Digital is planning to raise $2 billion through a stock offering to augment its BTC holdings. Being a BTC mining company, Marathon Digital already holds substantial BTC.
Their resolve to further invest in Bitcoin underscores their belief that the token will surge in the imminent years.
Moreover, GameStop aims to raise $1.3 billion via a 0.00% convertible note maturing in 2030. Their venture into the crypto sector serves as a strong endorsement of the crypto token.
What’s Causing the Crypto Decline? Why Is BTC Dropping?
Experts indicate that Bitcoin has declined even with corporations purchasing over 90,000 BTC in Q1 2025. This downtrend is attributed to long-term holders, or diamond hands, liquidating their holdings.
CryptoQuant statistics reveal that in the first quarter of 2025, these entities dumped over 178,000 Bitcoin, significantly overshadowing corporate acquisitions and amplifying pressure on BTCUSD. During this time, the coin fell from $109,000 to $77,000, representing a 25% decrease.
(Source)
Concurrently, institutions have been redeeming their spot BTC ETF shares, realizing profits. Analysts report that nearly $4.8 billion in Bitcoin-backed shares were redeemed, contributing to seller sentiment and pressuring BTC/USD prices.
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BTC prices may be subjected to further selling pressures.
Recently, the Donald Trump administration unveiled a new wave of tariffs on global trade partners, inducing crypto market uncertainties.
Anticipated economic strains will likely cause increased price swings, with crypto assets feeling the highest impact.
A mere day after Liberation Day on April 2, crypto prices are in decline. Significantly, the top 10 coins have reflected double-digit declines over the previous week.
EXPLORE: 17 Next Crypto to Explode in 2025: Expert Cryptocurrency Predictions & Analysis
Public Companies Accumulate BTC, What’s Causing Bitcoin’s Decline in 2025?
- Public companies such as Tether, Metaplanet, Strategy, and Semler Scientific are acquiring Bitcoin
- Tether is notably purchasing Bitcoin. Is it a tactical choice?
- Strategy remains the largest BTC holder
- Trump’s tariffs affecting cryptocurrency and financial markets
The post Public Companies Are Stacking Up, But Why Are BTC and Crypto Down Today? appeared first on 99Bitcoins.
