MicroStrategy Buoys Bitcoin with $370M Purchase, but Will Prices Move?
MicroStrategy, a company that owns 4% of all Bitcoin in existence, has resumed buying after a summer of selling. In late August, it purchased 4,603 coins for $370 million at an average price of $80,318 per coin.
This massive purchase is significant because large buyers like MicroStrategy use over-the-counter desks to avoid moving the market with their trades. However, even with this large buy, the market barely noticed due to its relatively small size compared to daily trading volume.
MicroStrategy's previous buys also failed to move the price, including a $3.4 billion purchase in January that coincided with Bitcoin's decline. The company's purchases tend to fall near local highs and sales cluster near annual lows, indicating it reacts to market sentiment rather than steering prices.