Competition Among Treasury Firms Could Strengthen the Market
The era of easy gains for crypto treasury firms is coming to a close, with analysts noting that companies must now focus on strategy and execution rather than simply holding Bitcoin. While the shift raises challenges, experts argue that it may ultimately lead to a healthier and more competitive market.
According to Coinbase’s head of research David Duong and researcher Colin Basco, “the days of easy money and guaranteed mNAV premiums are over.” In their latest report, the pair said digital asset treasuries (DATs) are entering a “player-versus-player” stage where only firms with strong positioning and innovation will thrive.
In the early stages, major Bitcoin-holding companies enjoyed what analysts describe as a scarcity premium, where investors rewarded first movers with high valuations. However, Duong and Basco emphasized that “the scarcity premium that benefited early adopters has already dissipated.”
Now, success depends on execution, differentiation, and timing, not merely copying the strategies of earlier leaders. NYDIG recently reported that many crypto treasury companies saw declines in valuation, even as Bitcoin rose above $115,000, underscoring the risks of saturation in the sector.
Seasonal Myths and Market Outlook
Another misconception facing investors is the so-called “September effect,” a belief that Bitcoin typically performs poorly during the month. While Bitcoin declined every September from 2017 to 2022, Coinbase’s research highlights that the trend failed in both 2023 and 2024. “Month-of-year isn’t a statistically dependable predictor of returns,” the report stated, urging traders not to rely on outdated seasonal assumptions.
Fed Rate Cuts Could Fuel Momentum
Looking ahead, analysts expect the Federal Reserve to cut interest rates twice in the coming weeks, a move that historically supports risk assets like crypto. Duong and Basco noted that “the crypto bull market has room to run,” pointing to liquidity, inflation pressures, and improving regulatory conditions as potential tailwinds heading into Q4.
As the easy-money era ends, the crypto treasury market is set for greater competition, sharper strategies, and a more resilient foundation—a development many believe could be good for the industry’s long-term growth.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.