DAT strategies under strain? What the $622M sell-off tells us

Key takeaways

What does the recent Bitcoin sell-off suggest about institutional sentiment? 

Institutional investors are pulling back, with significant outflows indicating reduced confidence in short-term price stability.

What level must Bitcoin hold to avoid confirming a bear cycle? 

Bitcoin must stay above the $99,653 cost basis to maintain bullish market sentiment.

Bitcoin [BTC] lost the $100,000 psychological level over the past 24 hours, trading at approximately $97,416 at press time.

The sell-off raises real questions about the sustainability of the accumulation trend among firms that have consistently added BTC to their balance sheets. AMBCrypto’s analysis reviews the key factors and what they signal for the market.

Digital asset treasury bets under scrutiny

Bitcoin Digital Asset Treasuries (DAT), which keep BTC as part of long-term treasury plans, have spent millions accumulating the asset over time.

This accumulation,  particularly as Bitcoin trades in a lower price region, reflects a bullish outlook among these firms.

Data from Bitcoin Treasuries shows that several companies, including nine major firms such as MicroStrategy, Strive, Cango Inc., Bitdeer Technologies Group, and Fold Holdings Inc., have increased their positions since November.

AMBCrypto’s findings show that these firms collectively spent roughly $241.80 million on Bitcoin, bringing their total net holdings to $64.33 billion, based on a BTC price of $97,416.16.

Purchases of this scale indicate confidence in the broader market structure. In many cases, digital asset treasuries factor in potential drawdowns before committing to large acquisitions.

Retail and institutional positioning diverge

Different segments of the market are reacting in contrasting ways to Bitcoin’s decline.

Spot investors, often more crypto-native, have accumulated $1.39 billion worth of Bitcoin despite the price drop. At press time, this cohort bought an additional $428.43 million in BTC as the asset fell toward the $97,000 region.

Institutional and traditional investors, however, are moving to the sidelines. According to SosoValue, these investors sold $622.71 million worth of Bitcoin in net flows.

On the 13th of November, institutional investors recorded their largest single-day Bitcoin sell-off, totaling $869.86 million at an average price of $98,162, a trend that may persist.

This sharp contrast in behavior between investor groups has cast uncertainty over the market’s direction.

AMBCrypto analyzed the key indicators that could determine whether Bitcoin is heading into a bearish phase.

Is the market bearish? This metric will tell

Cost basis is a reliable indicator for spotting potential market bottoms and the onset of bearish phases.

It relies on UTXO Age Bands to estimate the average purchase price of Bitcoin held by investors who bought between six and twelve months ago.

At press time, this level is $99,653. Generally, as long as Bitcoin stays above this threshold, market sentiment remains bullish.

CryptoQuant founder Ki Young Ju highlighted the importance of this level, saying:

“Personally, I do not think the bear cycle is confirmed unless we lose that level. I would rather wait than jump to conclusions.”