✔️MY FRIEND ASKED ME A QUESTION ABOUT CRYPTO TODAY ?:
$BTC Bitcoin ; Since it is a fixed, limited
asset (21 million supply), shouldn't the price rise very noticeably when an enormous purchase is made? For example, Saylor's Strategy purchases like 200,000 Bitcoin. That is a gigantic percentage of the market cap. How come the price didn't move at all？
I've also noticed other huge acquisitions that don't affect the price. In fact, the pumps seem completely random most of the time. They don't seem to correspond to suppply at all.
✔️ MY ANSWER WAS -
Because MSTR and a lot of big buyers do NOT BUY spot. They buy OTC, or by direct negotiated wallet to wallet transfer. This doesn't touch the spot price or market.
This is why when Saylor buys, the price doesn't really move at all. He isn't touching supply in the spot pool. He is buying a large batch via a negotiated order placed with Coinbase. Likely placed some time before purchase.
When people get excited by a Saylor buy, it is misplaced. It won't do anything to price and will largely be a signal that a local top is reached.
