Bitcoin to Fuel 2025 Rebound as Digital Asset Treasury Bubble Bursts, CoinShares’ Butterfill Says

COINOTAG News, December 6, cites CoinDesk that the Digital Asset Treasury (DAT) bubble has essentially burst. In a CoinShares report, James Butterfill, Research Director, states that the market now prices token treasuries at roughly 1x mNAV after previously trading at 3–10x, signaling a sharp correction in the model.

Looking ahead, the next trend hinges on market behavior: further price declines could trigger disorderly selling, while firms may hold their positions and await a rebound. Butterfill leans toward the latter, pointing to firmer macro conditions and a potential December rate cut that could buoy cryptocurrency demand.

Structural headwinds remain: previously, mega-treasury accumulations without viable businesses caused reputational damage. Today, investor tolerance for equity dilution without operating income and single-asset concentration is waning. By contrast, stronger firms are integrating Bitcoin into disciplined treasury and forex strategies, signaling a healthier development path.