Strategy buys often happen off-chain and in batches.
They don’t always align with Bitcoin’s bottom or pump.
Market depth can absorb large buys without major price impact
In the crypto community, there’s a common belief: whenever a large institutional player makes a “strategy buy” of Bitcoin, the price is bound to pump. But is that really the case?
A strategy buy typically refers to a planned Bitcoin purchase done in a thoughtful and long-term-oriented way. Institutions often use Dollar-Cost Averaging (DCA) — buying a fixed amount at regular intervals — and route these transactions through Over-The-Counter (OTC) desks. This allows them to avoid creating slippage in open markets.
When these purchases are eventually settled on-chain, observers may think they mark the exact bottom — but that’s often coincidence, not certainty.
OTC, DCA, and Market Depth: The Full Picture
Large buyers don’t usually smash the “market buy” button on public exchanges. Instead, they negotiate off-market OTC deals and then settle those BTC tranches on-chain in bulk. This gives the illusion of sudden whale activity — sometimes leading retail traders to assume a pump is coming or already underway.
But even big strategy buys are just a drop in the ocean of Bitcoin’s market depth. The BTC market is deep enough that a single tranche, even in the hundreds of millions, may not have a lasting price impact. That said, when these buys align with positive momentum, they can lift sentiment and generate temporary hype.
However, assuming every OTC or DCA-based move triggers a rally can lead to false expectations.
Do Strategy buys always nail the bottom and pump $BTC?
“They DCA via OTC and settle on-chain in batches. Sometimes that lines up with momentum and lifts sentiment, but market depth dwarfs any single tranche.” – By @IT_Tech_PL pic.twitter.com/VNnFqTUsjb
— CryptoQuant.com (@cryptoquant_com) August 20, 2025
Strategy Buys Affect Sentiment, Not Always Price
What these purchases do impact is market psychology. When on-chain analysts notice large settlements, they often interpret them as bullish signals. Social media hype builds, and this can influence short-term retail action.
But in reality, strategy buys are just one piece of a much larger puzzle. Timing, macroeconomic news, liquidity, and derivatives positioning play bigger roles in shaping Bitcoin’s price direction.
So next time you see a massive buy hitting the blockchain, it might not be the bottom — just business as usual for long-term players.
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