☕️Market Pressure Strangling Crypto Treasuries
The decline in crypto prices is exacerbated by macro risks such as the potential unwinding of yen carry trades if the Bank of Japan raises interest rates.Volatility has increased, chain liquidations are occurring, and short positions from large institutions are worsening the price decline.
☕️Companies like DAT, which once traded at multiples of 3–10 times mNAV, are now under pressure around their net asset values. This situation raises concerns that treasuries could be forced into large-scale selling.
☕️James Butterfill of CoinShares describes this as fragile but not without recovery opportunities. He believes two scenarios are possible: forced selling triggering deeper pressure, or holding assets until prices recover. CoinShares tends to view the second scenario as more likely as the macro environment begins to improve. The possibility of a December interest rate cut could improve liquidity and provide room for a crypto price rebound.
