CZ Explains Why Saylor’s Strategy 10,624 BTC Purchase Did Not Move The Market ⋆ ZyCrypto
The post CZ Explains Why Saylor’s Strategy 10,624 BTC Purchase Did Not Move The Market ⋆ ZyCrypto appeared on BitcoinEthereumNews.com.
Advertisement Strategy’s near-$1 billion Bitcoin purchase early in the week failed to trigger any upward price movement for the largest cryptocurrency, leaving several investors stumped. However, Binance founder Changpeng Zhao (CZ) has waded in to rationalize BTC’s sideways trading, citing the asset’s sheer liquidity as a key reason. Andrew Tate Questions Bitcoin’s Pricing, CZ Explains Internet influencer Andrew Tate, in an X post, has poked holes in Bitcoin’s pricing after a mega purchase by Strategy (MSTR) did not lead to any rally for the asset. At the start of the week, Strategy announced that it splurged $962.7 million to acquire 10,624 BTC. Despite the haul, CoinMarketCap data revealed sideways trading for the asset with Bitcoin barely logging 1% gains, leaving investors scratching their heads. “I’m huge on BTC, but MicroStrategy buys 10k BTC in a single day, and the price doesn’t move,” said Tate. “Explain that to me.” Tate’s comment elicited a debate with Binance founder CZ wading in to proffer an explanation. According to CZ, Strategy’s purchase represents only a fraction of Bitcoin’s market capitalization and is not enough to trigger a major rally given the growing liquidity of the asset class. “Buying 1/2000th of the market cap usually does not cause much waves,” said CZ. “BTC is liquid.” Advertisement For context, Strategy’s 10,624 BTC purchase for nearly $1 billion makes up 0.054% of the asset market capitalization. In previous cycles, previous $1 billion purchases have triggered massive price rallies for BTC, with Tesla’s $1.5 billion purchase in early 2021 triggering a frenzy. However, despite Bitcoin’s growing liquidity, a sell-off of similar magnitude can still cause prices to slump, as shown by recent profit-taking by investors. OTC Desks Purchases Rarely Move Prices Crypto analyst Quinten Francois, in an X post, theorized that the use…
