Bitcoin Price Crashes 12% Despite Massive Corporate Buying In Q1—What’s Going On?

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Leading on-chain data provider CryptoQuant has revealed a shocking trend that public companies bought a massive 91,781 BTC in Q1 2025. Yet, despite this strong buying activity, Bitcoin’s price dropped from $94,400 to $82,500, a 12% decline. So, who’s buying? Why is Bitcoin falling? And what’s next for the market?

Tether and MicroStrategy Lead the Buying Spree

One of the most unexpected buyers this quarter was Tether, the company behind the world’s largest stablecoin, USDT. Tether added 8,888 BTC in Q1, bringing its total holdings to 92,646 BTC. While Tether’s involvement in Bitcoin is not new, this latest addition has raised eyebrows in the crypto space.

Meanwhile, MicroStrategy, already known as the biggest corporate Bitcoin holder, continued its aggressive buying strategy. The company purchased 81,785 BTC in Q1, spending over $8 billion to increase its already massive Bitcoin holdings.

Other companies also joined the trend:

• The Blockchain Company added 605 BTC.
• Semler Scientific increased its holdings by 1,108 BTC.
• Metaplanet bought 2,285 BTC.

Who’s Planning to Buy Next?

While these companies have already made huge purchases, CryptoQuant notes that others are preparing to buy more Bitcoin. Marathon Digital, a well-known Bitcoin mining firm, is planning a $2 billion stock sale to fund more BTC purchases. 

Similarly, GameStop has proposed a $1.3 billion convertible note offering, signaling its intent to incorporate Bitcoin into its strategy.

If Companies Are Buying, Why Is Bitcoin Falling?

Despite corporate buying, Bitcoin’s price still fell by 12% in Q1. CryptoQuant points to two key factors that may have driven the decline. Firstly, the long-term holders sold off a massive 178,000 BTC during the quarter, adding significant sell pressure that outweighed corporate purchases.

Another major factor was the outflows from Bitcoin ETFs. In Q1, around $4.8 billion flowed out of Bitcoin ETFs, adding even more downward pressure on the market.

CryptoQuant Suggestion

CryptoQuant’s analysis suggests that only if this selling slows down, Bitcoin could see a strong recovery. With more companies planning big purchases, the market could soon turn bullish again.