Public companies buy 50,351 BTC in Q1, driving Bitcoin cycle in the second half of the year?

Bitcoin shows that a long-term buy demand layer still exists, even though prices have experienced strong volatility for two consecutive quarters.

Asset holders do not share the same objectives. Short-term buyers usually seek quick profits within a short timeframe, while investors considered “smart money” prioritize long-term positions and are less affected by short-term fluctuations. In this perspective, prolonged accumulation generally carries more weight than short-term positions of weak hands.

MAIN CONTENT

• Companies bought 50,351 Bitcoins in Q1, the highest quarterly total recorded.
• Accumulation occurred while BTC decreased 22% in Q1, after a 23.29% decline in the previous Q4.
• Current data shows corporate demand remains sustained, but it’s not enough to conclude the long-term impact of this buying flow on prices.

Businesses continue buying during price declines

The data mentioned indicates that companies accumulated 50,351 BTC in this year’s Q1, the highest quarterly total ever recorded. Notably, this buying activity took place alongside a 22% correction in Bitcoin, meaning corporate buying did not follow a defensive approach against short-term price volatility.

Source: X This trend is set against a broader picture among long-term holders. According to a recent report from ARK Invest, the supply of BTC held by faith-based long-term holders increased by 69% in Q1 to 3.60 million BTC, the highest level since 2020. The total supply held by long-term investors, defined as those holding for 155 days or more, reached 14.62 million BTC, up 4.5% year-over-year.

Another detail is that weak price performance in Q1 is not an isolated event. Previously, BTC also declined 23.29% in Q4. This indicates the market entered a correction phase with a cautious mindset, yet corporate treasuries continued to accumulate BTC. Current data does not yet reveal how long this buying activity will last or its potential impact on the next price cycle.

The role of Bitcoin during macroeconomic volatility

In recent two quarters, Bitcoin has faced clearer challenges as a hedge against macroeconomic fluctuations. BTC fell more than 20% in both Q4 and Q1, while gold increased about 20% during the same periods. Although the BTC/XAU ratio has partially recovered in Q2, Bitcoin’s quarterly performance remains below gold’s in these two consecutive quarters.

Source: Polymarket Alongside this, according to Kobeissi Letter, the probability of the Fed raising interest rates in 2026 has increased to 24%. The market is also pricing in a scenario with no rate cuts until December 2027. If this outlook persists, the high interest rate environment could last longer, keeping macro volatility a key factor to monitor.

In this context, the continued inclusion of BTC on corporate balance sheets is understood more as a form of long-term capital allocation rather than cyclical trading. However, current data only shows that buying demand persists during periods of volatility, but it’s not enough to conclude that this will translate into a sustainable price trend in the second half of the year.

Summary

The notable point of these figures is the disconnect between price and buying behavior. Bitcoin has declined sharply over two consecutive quarters, yet corporations and some long-term holders continue accumulating. This indicates there is still long-term demand for BTC, despite pressures from interest rate environments and macroeconomic volatility not yet dissipating. The missing piece is how long this buying flow will last and how widespread it will be in the upcoming quarters.

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