Corporate Bitcoin Buying Binge Could Trigger Crash: StanChart

A recent wave of corporate Bitcoin buying could trigger a crash if a drop below $90K sparks panic selling, Standard Chartered warned.

“Bitcoin treasuries are adding to Bitcoin buying pressure for now, but we see a risk that this may reverse over time,” said Geoff Kendrick, head of FX and crypto research at the bank.

Corporate Bitcoin holders have doubled in the past two months, with total holdings nearing 100,000 BTC, Kendrick said. But unlike early adopters like Strategy (formerly MicroStrategy), most of these firms bought in at or near $100,000, he added.

If BTC drops to $90,000, roughly half of those companies would be underwater, raising the risk of a cascade of panic selling that could trigger a crash, he said.

If Bitcoin drops 22% below the firms’ average buy-in price, Kendrick said the corporate buyers will likely be forced to sell.

Struggling Dollar Could Boost BTC Appeal

Not everyone is bearish on the recent corporate BTC buying spree. Galaxy Digital CEO Mike Novogratz says Bitcoin’s price weakness is temporary and sees it surging to up to $150k soon, while billionaire investor Tim Draper reiterated that he sees Bitcoin hitting $250k this year. 

According to BTC-centric firm Swan, the increase in institutional interest is part of a broader seismic shift in the global financial market. 

In a June 4 thread on X, the company said that BTC is deviating from its usual 4-year cycle as a “massive shift” plays out under the surface. The company noted that “a rare and dangerous split is unfolding” as the US dollar weakens while bond yields surge, warning that this is a “major red flag for global capital.”

As Bitcoin rotates into stronger hands, the macro backdrop is flashing warnings.

A rare and dangerous split is unfolding:The U.S. dollar is weakening while bond yields surge.

That’s not supposed to happen—and it’s a major red flag for global capital. pic.twitter.com/izF7NobX1B

— Swan (@Swan) June 4, 2025

That, according to Swan, has pushed institutions to buy into Bitcoin for the long-term to preserve their capital.

Coinbase CEO Brian Armstrong echoed a similar sentiment on X yesterday, when he said that Bitcoin could overtake the US dollar as the reserve currency if the electorate does not hold Congress accountable for reducing the US national debt.

If the electorate doesn’t hold congress accountable to reducing the deficit, and start paying down the debt, Bitcoin is going to take over as reserve currency.

I love Bitcoin, but a strong America is also super important for the world. We need to get our finances under control. https://t.co/aeBE7pUuHo

— Brian Armstrong (@brian_armstrong) June 4, 2025

Armstrong shared a post from World of Statistics that shows the US national debt has ballooned from $29.6 trillion to $36.9 trillion between 2021 and 2025.

Such analysis sees investors continuing to pile into Bitcoin in future as the dollar weakens under mounting US debt.

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