Strategy's recent acquisition of over 10,000 Bitcoin, valued at $1 billion, did not lead to a price rally due to the use of over-the-counter (OTC) trading mechanisms. Analyst Quinten Francois noted that the transaction was conducted through OTC desks, which operate outside public exchanges to prevent market volatility.
OTC desks source Bitcoin from large holders, including miners and venture capitalists, and distribute the purchase over an extended period. This method ensures that significant trades do not impact public price charts, keeping institutional demand discreet and maintaining market stability.
Strategy's $1 Billion Bitcoin Purchase Leaves Market Unmoved
Disclaimer: The content provided on Phemex News is for informational purposes only. We do not guarantee the quality, accuracy, or completeness of the information sourced from third-party articles. The content on this page does not constitute financial or investment advice. We strongly encourage you to conduct you own research and consult with a qualified financial advisor before making any investment decisions.
