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In a video explanation clip, Joe Burnett, Market Research Director at Bitcoin Native Services Unchained, anatomy of many retail merchants still considers a paradox: how a strategy (previously known as Microstrategy) can accumulate “tens of thousands of Bitcoins” without behaving in the immediate price to head climbing. The main Burnett’s argument is that Michael Celor’s shopping periods are not the direct injection of the new demand that seems to be, but rather an advanced allocation of the current exposure within the Bitcoin ecosystem.
Why does Bitcoin not rise?
Portnet Open By reminding the viewers that Bitcoin’s explosive step “was” at the lowest level of $ 16,000 in 2022 to 95,000 dollars today “, was historically accompanied by inactive supply. He refers to the “Hodl Wave” data on the series, noting that when Price accelerates, “old currencies begin to move”, which is an indication that the owners of the forbidden are ready to abandon the inventory to power. “Transport … to new hands,” says a group that it widely defines as “strategy, ETF buyers, institutions, nation -states, and of course more individuals.”
The strategy is located directly in that regiment, however Burnett emphasizes that the trading style of the software company has been calibrated to reduce market disorder. “They use a disciplined strategy or the patient, or put thousands or even millions of small purchase orders over several days,” he says, quoting the general comments of the company that the company prefers to allow the sellers to reach them without giving bids against themselves. This tactic allows long -term holders, it can be said that it is less sensitive to the price by the exchange of coins for cash without creating the imbalances of the fleeing application book.
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The analytical axis of the video reaches when Burnet presents what he calls an “additional theory” about the reason for the failure of the strategy purchases to ignite the equivalent price: the financing structure. It separates it with a simple but pointed analogy. He says: “If you sell one bitcoin on Kaken and buy one bitcoin on Coinbase, what happens to the price? Nothing.” “This is an economically neutral trade.” According to Portnet, the budget maneuvers in the strategy are repeated this neutrality.
When the company is raised by money by issuing new ownership rights, “someone buys these shares instead of buying Bitcoin,” Burnett explains. Then the strategy turns stock revenue into the BTC spot. “The net effect? Transfer in exposure. There is no new net request.” He says that the same mechanics apply to the convertible company programs. Hedge boxes that are invaded at the same time of hedging through MST shares in short sale, and expanding float instead of getting rid of dollars from unrelated assets. “In both cases … the dollars flowing to Bitcoin for the first time are withdrawn from the Bitcoin agent, and the MSTR shares,” he says, stresses the nature of zero flow.
A new request is needed
The dynamic migration of cash migration that followed the launch of the money circulated on the American Stock Exchange is similar to early 2024. billions flowed into products of Blackrock and Fidelity, but “billions also overlapped from GBTC”, as he notes, leaving a bleak demand for bitcoin without some extent: “From A to B. not the new demand”.
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What, then, will form a mobile capital? Burnett’s answer is unambiguous: the money that “enters Bitcoin without leaving another bitcoin agent.” It is cited assumptions ranging from Apple Treasury to sovereign wealth boxes, or individuals who are hostile real estate real estate and bond color directly in BTC. Against this standard, strategic transactions look like a plumbing within the system of fresh flows.
Nothing of this, as Burnet confirms, you should read as criticism of Celor. The head of the strategy is called a “Bitcoin teacher at the global level” his “exquisite” strategy. However, the impact of the market, warns, “more accurate than [it may] It appears. “Actually, it suggests that the upcoming SAYLOR-Saylor-targeting investors with fixed income investors instead of stock buyers-can provide the original outdoor capital that” finally sends the equivalent bitcoin price. “
Until this external demand is achieved, the Bitcoin market is likely to continue to absorb strategic bids with billions of dollars in a sudden calm. “Saylor can buy a lot of Bitcoin without moving the price a lot because it buys the long -term wealthy holders and do this in a way that reduces the impact of prices in the short term.” For merchants who expect fireworks every time the software company provides 8 km, this explanation may be proven.
At the time of the press, BTC was traded at $ 94,971.
Distinctive image created with Dall.e, Chart from TradingView.com
