When welcomed as a bridge to facilities securing the role of cryptocurrency in corporate finance, Bitcoin's finances fell sharply, plunging 76% as Wall Street pulled back.
More than that Serving As a solid foundation for demand, businesses, pensions and institutions hold Bitcoin on their balance sheets. Corporate support, which initially supported pricing support, is beginning to change to the contrary.
Wall Street is back from Bitcoin's Treasury
According to data from Cryptoquant, the Digital Assets Treasury Bitcoin purchases have fallen from 64,000 BTC in July to 12,600 in August. So far in September, that number has been at just 15,500 BTC. This is down 76% from the early summer frenzy.
Bitcoin has dropped nearly 6% in a week, with other major tokens like ether falling too. Sudden liquidation and liver derivative activity accelerated sales.
Meanwhile, some Treasury stocks have fallen. Some of the more cheerful private investments in public stock trading are now priced at 97% more than the issuance price. According to analysts at Cryptoquant, if pressure remains, companies could lose another 50% of their value.
The Wall Street Journal reported that US regulators are currently investigating unusual transactions involving Treasury-related announcements. Market observers also note that there is limited visibility at the amount of cryptos owned by these companies and the price they acquire. Complex private investments in public equity with warrants have made monitoring of true stock numbers and dilution risks even more difficult.
What was once advertised as a safe institutional lamp now seems tenuous. Many stocks in listed finance companies are currently below or even below the value of Bitcoin in their books.
Institutional sellers clean up demand ledgers
For most of 2025, digital assets finance was considered an anti-circular buyer, injecting billions into Bitcoin and absorbing sales. It encouraged the confidence that Wall Street could serve as a stabilizing force for the market.
That confidence is shaking. Without capital, they can no longer exercise their purchasing power. It creates a cycle on the contrary. Lower demand for facilities reduces prices and causes new influx.
In the derivatives market, pressure is the most visible. Interest in longer-dated futures has dried up, with Bitcoin Long liquidated over $275 million a day this week alone. The reversal reflects an increase that reluctantly poses risk for traders.
However, as ETFs are still light, retail is hanging tightly, with the Ishares Bitcoin Trust ETF winning $2.5 billion last month, a sharp rise from $707 million in August. Small investors are still chasing exposure as corporate buyers withdraw.
According to Arca's Chief Investment Officer Jeff Dorman, the rotation was easy. The code looked weak as the Treasury Department of Digital Assets fell over. This did not cause direct sales pressure, but it effectively sidelined a deep, out-of-pocket buyer from the market.
Even older traders are wary of what's going on. Morten Christensen, who runs AirDropalert.com, said he saw a warning sign in August when Bitcoin passed the $123,000 mark.
He said the spread of finance companies is a sign that, in his view, likened it to an earlier cycle characterized by a sudden decline that was followed by an overly confident.
And the sharp pullback refers to a new reality. Rather than consolidating Bitcoin into corporate finance, digital assets financed it added another volatility layer to the market.
