MicroStrategy's Bitcoin Buying Spree: Will It Move the Needle?
MicroStrategy, formerly known as MicroStrategy, has resumed buying Bitcoin after a summer of selling. The company owns 4% of all existing Bitcoins and has added 4,603 coins to its holdings for $370 million in total. This purchase brings the average price per coin to $80,318.
While this may seem like a significant move, the impact on the market is likely to be minimal. The company's previous purchases have not had a substantial effect on Bitcoin's price, and its latest buy represents only 0.02% of the cryptocurrency's market cap.
In fact, according to data from CoinMarketCap, even if MicroStrategy made a single bulk purchase, it would account for only 1.2% of the day's Bitcoin volume, which averages around $30 billion per month.
Furthermore, big buyers like MicroStrategy often use over-the-counter desks instead of crypto brokerages to avoid moving market prices with their large orders. This means that even if the company were to make a massive purchase, it would not necessarily have a significant impact on the price of Bitcoin.