How Do Strategy’s Bitcoin Buys Impact BTC Price? VanEck’s Sigel Weighs In as BTC Reclaims $90K
The post How Do Strategy’s Bitcoin Buys Impact BTC Price? VanEck’s Sigel Weighs In as BTC Reclaims $90K appeared on BitcoinEthereumNews.com.
VanEck’s Matthew Sigel has analyzed the impact of Strategy’s Bitcoin purchases amid an impressive recovery push by the crypto firstborn. As Bitcoin surges past the $90,000 mark for the first time in over a month, market watchers again question the impact of Strategy’s relentless buying on BTC price action. However, fresh insights from VanEck’s Head of Digital Assets Research, Matthew Sigel, suggest that fears of market manipulation or artificial price inflation may be overstated. How does Strategy’s Bitcoin Buys Impact Price? According to Sigel, who cited data from investment bank TD Cowen, Strategy’s (formerly MicroStrategy) weekly Bitcoin purchases account for only a small fraction of overall market activity. On average, the company contributes around 8.4% of total weekly buy volume, although this number is skewed by a few exceptionally high-volume weeks. In most cases, its market share stays in the low single digits, around 3.3%, and there are multiple weeks when the firm does not buy any Bitcoin. Weekly Bitcoin Trading Volume | TD Cowen Notably, statistical data support the idea that Strategy’s influence on price trends is minimal. Sigel found only a weak correlation, about 25%, between the company’s Bitcoin buying volume and BTC’s weekly closing price. In addition, the correlation with price changes over the course of a week is similarly low at 28%. These figures suggest that the firm’s activity does not have a meaningful or predictable effect on Bitcoin’s short-term price behavior. Meanwhile, Sigel also addressed concerns about the new Bitcoin supply from miners. His research shows that Bitcoin’s secondary market trading volume massively outweighs mining outputs, making miners less influential in setting prices. Even when considering MicroStrategy’s purchases, secondary market activity remains roughly 17 times greater than total new supply, confirming the view that major institutional buys like MicroStrategy’s do not distort the overall market.…
