Introduction
Bitcoin‘s price has recently seen a sharp decline, despite significant corporate investments in the first quarter of 2025. Data provider CryptoQuant revealed that publicly listed companies bought a total of 91,781 BTC during Q1, a move that surprised many in the crypto world. However, despite this large-scale buying activity, Bitcoin’s price has dropped more than 23% from its peak of $108,000, falling from $94,400 to $82,500 – representing a 12% decrease. This scenario has left investors and market analysts questioning what lies ahead for Bitcoin and the wider cryptocurrency market.
Tether and Its Role in the BTC Buying Spree
One of the most surprising buyers during this period was Tether, the company behind the USDT stablecoin. Tether added 8,888 BTC to its holdings in Q1, bringing its total Bitcoin reserves to 92,646 BTC. While Tether has been involved in Bitcoin purchases before, the recent buying spree has caught the attention of the crypto community.
Meanwhile, Strategy (formerly known as MicroStrategy), the company known for holding the largest Bitcoin reserves, continued to purchase Bitcoin in large quantities. The company bought 81,785 BTC in Q1, spending over $8 billion to expand its Bitcoin holdings.
Other companies also joined the Bitcoin accumulation trend:
- Semler Scientific increased its Bitcoin holdings by 1,108 BTC.
- Metaplanet purchased 2,285 BTC.
Who Will Be the Next Big Buyer?
While these companies have made significant Bitcoin acquisitions, CryptoQuant notes that other companies are also preparing to make further purchases. Notably, Marathon Digital, a prominent Bitcoin mining company, is planning to raise $2 billion by issuing shares to fund additional BTC purchases.
Similarly, GameStop has proposed issuing $1.3 billion in convertible bonds, signaling its intent to add Bitcoin to its investment strategy.
Why Is Bitcoin’s Price Falling Despite Corporate Buying?
The question remains: if so many companies are buying Bitcoin, why is its price declining? CryptoQuant points out two key factors that could explain this downturn:
- Long-Term Holders Selling: In Q1, long-term Bitcoin holders sold off 178,000 BTC, a massive amount that created significant selling pressure, outweighing the buying activity from corporations.
- Outflows from Bitcoin ETFs: Another contributing factor is the outflow of funds from Bitcoin ETFs. Approximately $4.8 billion exited Bitcoin ETFs during Q1, which added downward pressure on the market.
What’s Next for Bitcoin?
CryptoQuant suggests that Bitcoin could recover, but only if the selling pressure slows down. With more companies poised to buy Bitcoin, the market may experience another price increase in the coming months.
The big question now is whether institutional buyers can absorb the ongoing selling pressure, or if Bitcoin’s price will continue to struggle. The next quarter will be critical for the cryptocurrency market, as it will determine whether Bitcoin can regain its upward momentum or if further challenges lie ahead.
Conclusion
While the corporate accumulation of Bitcoin is a positive sign for long-term adoption, short-term market fluctuations remain a concern. Investors and analysts alike will be watching closely as the market reacts to both institutional interest and selling pressure in the coming weeks.
