Why Saylor’s Billion-Dollar Bitcoin Buys Barely Move The Price, Expert Explains
Joe Burnett, Director of Market Research at Unchained, explains why Strategy's accumulation of Bitcoin does not significantly impact its price. He argues that Michael Saylor's purchases represent a reallocation of existing Bitcoin rather than new demand. Historical price increases have been linked to the movement of dormant supply, with seasoned holders selling into strength. Strategy employs a disciplined buying approach, placing numerous small orders to avoid market disruption. Burnett highlights that when Strategy raises cash through equity, it merely shifts exposure without generating new demand for Bitcoin. He compares this to cash flows from Bitcoin ETFs, where funds move between products without increasing overall demand. Genuine price-moving capital would need to enter Bitcoin directly from outside sources. Until such demand arises, the market will likely absorb Strategy's purchases without significant price changes.
