TL;DR
Token Metrics technicals show bitcoin is in a bearish trend with the token trading near $71,500. Strategy sold bitcoin for the first time since 2022, ending a three-year buying streak.
Context
The digital asset treasury trade grew popular in 2024. Dozens of companies raised capital through stock and debt offerings to buy bitcoin and ether, aiming to replicate Michael Saylor’s playbook. Strategy led this trend. The model worked while crypto prices surged and treasury stocks traded at premiums to their underlying values. This created a loop that attracted more companies.
The trend shifted when markets peaked in October 2025. Token prices fell and stocks slipped below net asset value. Many firms lost the ability to raise capital on attractive terms, and some stocks fell more than 90% from their peak. The pressure forced companies to stop buying or start selling. Strategy held strong longer than others. Saylor kept pushing to buy bitcoin. But the market downturn tested even the strongest believers.
This model relies on rising prices. When prices drop, the strategy becomes risky. Low interest rates and rising crypto prices made it attractive initially. It allowed companies to use their balance sheets to make money. But when the market turned, the risks became clear.
What Token Metrics Data Shows
Data as of June 1, 2026, shows bitcoin trading near $71,550. It is down roughly 3% on the day and almost 8% over the past week. Token Metrics technicals indicate a bearish trend. The price sits near the lower end of its recent range. Momentum is weak. The trend is down, but not extremely strong. Volatility is low, which often happens before a big price change. Smart-money netflow and token-market signal data align with this bearish technical outlook, suggesting institutional hesitation.
Token Metrics Daily Pulse coverage flagged this as a main item, highlighting the significance of the current price action.
What’s New
Strategy’s decision signals the end of an era for the digital asset treasury trade. The company that inspired dozens of imitators has finally joined the ranks of sellers, if only temporarily.
The broader industry shows consolidation trends. Several firms have been reducing crypto holdings recently.
Others have abandoned the model entirely.
However, a few buyers remain active.
Prior Analogs
The current situation looks like past market cycles. During the 2017 crypto boom, many companies rushed into blockchain rebranding, hoping to capture investor enthusiasm. When the market crashed in 2018, most of those projects dissolved, and companies reverted to their core businesses. The 2020 DeFi boom followed a similar path. High yields attracted massive capital inflows. When yields dropped and security risks emerged, many projects failed.
Digital asset treasuries might follow this path. Companies with strong cash flow and clear plans will likely survive. Others that took on too much leverage face tough choices. The crypto market has seen this before. Trends rise quickly and fall just as fast. The difference this time is the use of corporate balance sheets. This adds a layer of complexity to the market cycle.
The market usually stabilizes when weak sellers leave and strong buyers step in.
What to Watch
Investors should watch Strategy’s next filing for more sales to determine if this was a one-time event or a shift in strategy. Monitor the Polymarket consensus, where roughly $14 million in betting activity reflects market sentiment regarding Strategy’s future actions. It is also important to track whether remaining active buyers continue their accumulation or if market conditions force a broader pause. Observing if more companies abandon their crypto holdings will signal if the treasury trade is ending.
This information is for educational purposes only and should not be considered financial advice.
