What happened?
According to CryptoQuant, corporate Bitcoin adoption has significantly declined since July, with a 95% drop in the number of companies integrating Bitcoin into their reserve assets. The peak occurred in July with 21 new adopters, but a sharp reversal began in August, and by September, only one company had adopted Bitcoin.
Who does this affect?
This downturn in adoption affects not just corporations that have incorporated Bitcoin into their financial strategies, but also investors, both individual and institutional, who hold Bitcoin or are considering investing. It could also impact other businesses within the cryptocurrency service industry, such as exchanges and wallet providers.
Why does this matter?
Market experts note a correlation between corporate Bitcoin buying and Bitcoin’s performance in the market, suggesting that a slowdown in corporate adoption could pose risks to Bitcoin’s price stability. Furthermore, many Bitcoin treasury companies depend on Bitcoin’s price gains for solvency, so a decline in corporate adoption coupled with a price drop could potentially lead to a substantial market impact.