Is the Bitcoin Digital Asset Treasury Model Broken? Architect Partners Says No

The flow of capital into spot Bitcoin and Ethereum ETFs has shown signs of recovery, marking the first week of net-positive inflows since October, following a prolonged period of outflows. This shift indicates a potential stabilization in institutional demand for these cryptocurrencies after a challenging month.

S&P Global Ratings has downgraded Tether's USDT stablecoin to its lowest stability rating, citing concerns over its increasing exposure to Bitcoin and governance issues. This downgrade has sparked a significant online backlash, with Tether asserting its financial strength and criticizing the rating methodology used by S&P.

Bitcoin's price has stabilized around $91,453, showing resilience after a significant sell-off, with analysts noting reclaimed support and a filled fair value gap, indicating potential for further upward movement. This price level is crucial as it reflects the market's response to recent volatility and bears guarding key resistance levels.

Ethereum developers are preparing for the Fusaka upgrade, the second significant upgrade of 2025, scheduled for December 3. This upgrade aims to enhance the network's capacity and efficiency, following the previous Pectra upgrade. The anticipation surrounding Fusaka is heightened by recent adjustments, including an increase in the block gas limit to 60 million.

Bitcoin miners are facing a challenging December as the network's mining difficulty is set to increase from 149 trillion to nearly 150 trillion, while hashprice remains low at around $38.3 PH/s, just above the break-even point for many operations. This situation is exacerbated by a recent decline in Bitcoin's price, which has raised concerns among miners about the sustainability of their operations.

Bitcoin's price remains near $91,000, hindered by weak ETF flows and cautious derivatives trading, despite a rally in stocks and gold driven by rising bets on interest rate cuts. Analysts express concern over Bitcoin's inability to break this key resistance level.

Recent research indicates that Bitcoin's price action is closely mirroring the 2022 bear market, with a correlation rate reaching 98%. This trend coincides with a notable influx of $220 million into Bitcoin exchange-traded funds (ETFs), suggesting a potential shift in market sentiment.

Strategy CEO Phong Le announced that the company would consider selling Bitcoin as a last resort if its stock falls below net asset value and funding options become unavailable, emphasizing a financial decision-making process.