DAT Buying Remains Frozen Post-Crash, Says Coinbase
Digital Asset Treasury (DAT) buying, especially for Bitcoin, has nearly stopped since the October 10 crash, signaling low confidence among large investors.Summary
According to analysis by David Duong, Head of Coinbase Research, cryptocurrency buying activity by Digital Asset Treasury (DAT) firms has significantly decreased following the market crash on October 10, with Bitcoin purchases hitting their lowest level this year.
While Ethereum (ETH) purchases persisted over the past two weeks, this accumulation was highly concentrated in a single entity, Bitmine Immersion Technologies (BMNR), which now holds over 3.31 million ETH, or about 2.8% of the total supply. Duong noted that DAT-led buying is a key indicator of bullish sentiment, and their current absence, particularly for Bitcoin, suggests limited confidence among large investors.
Duong attributes the lack of Bitcoin DAT buying to a cautious stance adopted by major players following the significant leverage flush on October 10. He recommends caution in the short term, as the market appears more fragile when the largest discretionary balance sheets are sidelined.
(Source：BeInCrypto)