Columbia Professor Claims Bitcoin's Price Drop is Driven by Crypto Treasuries

Crypto Treasuries Impact on Bitcoin: Crypto treasury firms have been identified as a significant factor in Bitcoin's price decline, as they enable large-scale token exits and have contributed to a mass extraction event in the market.

Leverage and Speculation: Many treasury firms have relied on leverage and speculative strategies to raise funds, which can amplify losses during market downturns, further pressuring Bitcoin prices.

Market Dynamics: Omid Malekan emphasizes that the internal dynamics of the crypto market, particularly the activities of digital asset treasury firms, should be considered alongside external factors like U.S.–China trade tensions when analyzing Bitcoin's price slump.

Growth of Treasury Firms: Despite concerns about their impact, the trend of companies adding Bitcoin and Ethereum to their balance sheets continues to grow, with 207 firms now holding over one million BTC and 70 companies holding over 6.14 million ETH.