The slowdown in corporate crypto treasuries’ activity has led to a decline in Bitcoin and other major altcoin prices. Market observers predict continued volatility in the near-term due to reduced demand and risk-off sentiment. Bitcoin recently dropped below $109,000 for the first time since September 1.

Bitcoin treasury purchases have significantly decreased, with only 12,600 BTC acquired in August and 15,500 so far in September. The cooling off of treasury accumulations correlates with lower prices for Bitcoin and other cryptocurrencies as corporate demand wanes, leaving the market more vulnerable to volatility.

Several treasury firms, including Solana and BitMine Immersion, have seen their share prices plummet in the past week. Companies like Helius Medical Technologies and BitMine Immersion are trading well below their issue prices after raising funds through private placement in public equity (PIPE) deals.

Financial regulators are now investigating high trading volumes and share price increases related to corporate crypto buys. Despite potential challenges, some experts, like Gerry O’Shea from Hashdex, believe that Bitcoin could reach $140,000 or higher by the end of the year, with corporate treasuries playing a significant role in fueling a potential rally.

Read more at Yahoo Finance: What Will the Slowing Growth of Bitcoin, Ethereum Treasury Buys Mean for Markets?