Table of Contents
Bitcoin dropped to $102,000 after Sequans Communications became one of the first corporate treasuries to sell a significant BTC position. The French semiconductor company dumped 970 BTC to pay down debt, sparking questions about whether institutional enthusiasm for Bitcoin is cooling.
Disclaimer: Cryptocurrency is a high-risk asset class. This article provides information only and does not constitute investment advice. You could lose your entire investment.
Sequans Dumps Nearly 1,000 BTC to Reduce Debt
Sequans Communications (NYSE: SQNS), an IoT semiconductor company based in France, sold 970 Bitcoin to restructure its balance sheet. The sale allowed them to redeem 50% of their $189 million convertible debt, bringing their outstanding obligations down to $94.5 million.
The transaction reduced Sequans’ Bitcoin holdings from 3,234 BTC to 2,264 BTC – still worth approximately $240 million at current prices. Their debt-to-net-asset-value ratio improved from 55% to 39%, giving management more financial flexibility.
Why This Sale Matters
Sequans was among the first corporate treasuries to adopt Bitcoin as a reserve asset, following the playbook established by companies like MicroStrategy. When early adopters start selling, it raises concerns about whether the “Bitcoin treasury strategy” narrative is losing steam.
CEO Georges Karam tried to reassure the market, calling the move “a tactical decision to strengthen financial foundations” while reaffirming long-term commitment to Bitcoin. The company plans to expand its share buyback program, potentially increasing Bitcoin-per-share metrics for remaining investors.
Bitcoin Technical Analysis: Testing Critical $100K Support
Bitcoin has dropped 8% from its recent $111,000 high, forming a descending wedge pattern on the 4-hour chart. This formation typically precedes bullish reversals, though confirmation requires a breakout above resistance.
Key Technical Levels
Support zones:
- $100,400 (critical psychological level)
- $97,600-$95,000 (September price base)
Resistance zones:
- $103,600 (immediate resistance)
- $106,300 (short-term target)
- $111,200 (recent high)
Momentum Indicators Signal Potential Bottom
The Relative Strength Index (RSI) sits at 31, approaching oversold territory. A subtle bullish divergence suggests accumulation may be happening despite the price decline.
However, the 50-day exponential moving average ($103,500) and 200-day EMA ($105,200) are capping upside attempts, creating resistance that bulls need to overcome.
What Sequans’ Sale Really Means
The market’s reaction has been relatively muted considering this is a major treasury selling nearly 1,000 BTC. A few possibilities explain why:
It’s Balance Sheet Management, Not Loss of Faith
Sequans needed to reduce debt obligations. Selling Bitcoin to accomplish that doesn’t necessarily indicate bearish sentiment on BTC’s long-term prospects. Companies with large crypto positions occasionally need to rebalance for operational reasons.
Other Treasuries Aren’t Following
If this sale triggered a cascade of corporate treasury liquidations, we’d see much more dramatic price action. The fact that Bitcoin only dropped 2.45% suggests other holders aren’t panicking.
Institutional Adoption Continues
While Sequans sold, other companies continue accumulating. The overall trend of corporate Bitcoin adoption remains intact, even if individual treasuries occasionally need to liquidate portions of their holdings.
Bitcoin Price Prediction: What Happens Next?
Two scenarios dominate current market discussion:
Bullish Case: Wedge Breakout
If Bitcoin reclaims $103,600 with volume, the descending wedge pattern suggests a potential rally to:
- $106,300 (short-term target)
- $111,200 (retest of recent high)
- $115,000-$120,000 (next resistance zone)
The bullish divergence on the RSI supports this scenario, indicating that selling pressure may be exhausted.
Analysts expect strong momentum for Bitcoin in Q4.
Bearish Case: Support Breakdown
Failure to hold $100,400 could trigger deeper correction toward:
- $97,600 (initial support)
- $95,000 (stronger support from September)
- $92,000 (extreme scenario if panic sets in)
This scenario becomes more likely if additional corporate treasuries announce sales or if broader market conditions deteriorate.
Is the Bull Market Actually Over?
Short answer: Probably not.
One corporate treasury selling Bitcoin to optimize their balance sheet doesn’t constitute the end of a bull market. Here’s why long-term conviction remains strong:
Institutional Infrastructure Expanding
Bitcoin ETFs continue seeing inflows. Corporate adoption keeps growing. Payment infrastructure improves. These fundamental trends don’t reverse because one company sold 970 BTC.
Market Cycles Are Normal
Eight percent corrections happen in bull markets. Bitcoin has experienced dozens of similar pullbacks during previous rallies before reaching new highs.
Corporate Treasuries Will Occasionally Sell
Expecting every company that buys Bitcoin to hold forever is unrealistic. Balance sheet optimization, debt management, and operational needs will periodically require sales. That’s normal corporate behavior.
Bitcoin Hyper: Attempting to Solve BTC’s Speed Problem
Bitcoin Hyper ($HYPER) represents an interesting development attempting to address Bitcoin’s scalability limitations. Built as a Bitcoin-native Layer 2 solution powered by Solana’s Virtual Machine (SVM), it aims to combine Bitcoin’s security with Solana’s speed.
The project promises lightning-fast transactions, low-cost smart contracts, and decentralized applications – all secured by Bitcoin. Whether this approach gains traction remains to be seen, but it reflects ongoing efforts to expand Bitcoin’s utility beyond store of value.
Bottom Line
Sequans’ 970 BTC sale created temporary price pressure but doesn’t signal the end of Bitcoin’s bull market. The descending wedge pattern suggests a potential bottom is forming, with a breakout above $103,600 potentially triggering recovery toward $111,000+.
Short-term sentiment remains fragile as the market digests this news and tests the critical $100,000 psychological support level. However, long-term fundamentals – including continued institutional adoption and corporate treasury strategies – remain intact.
For traders, the current price action presents both risk and opportunity. A confirmed breakout offers upside toward $115,000-$120,000, while failure to hold support could mean revisiting $95,000.
The bull market isn’t over just because one early adopter took profits to optimize their balance sheet. This is normal market behavior during healthy corrections.