Michael Saylor's Strategy (MSTR) keeps buying bitcoin, so why isn’t the price moving?
Michael Saylor's MicroStrategy's Bitcoin purchases are too small to impact price due to larger market forces.Summary
Despite MicroStrategy (MSTR), the largest publicly traded Bitcoin holder, making significant purchases, its Bitcoin acquisitions are no longer moving the market price. This is because MSTR's demand, accounting for only about 7% of gross inflows and 9% of net flows, is dwarfed by larger market dynamics. These include substantial supply changes from long-term holders, revived older coins, ongoing miner issuance, and significant capital outflows from sources like U.S. spot ETFs and a drawdown in Bitcoin's realized cap. While MSTR's buying is consistent, it is being overwhelmed by these broader forces that are distributing supply and pulling capital out of the system, leading to Bitcoin's price often declining around the time of MSTR's purchase announcements.
(Source：CoinDesk)