So how did Microstrategy get $425 million into BTC without moving the price?

in LeoFinancelast month

Microstrategy reveals how they were able to get $425 million into BTC over the last several weeks without moving the price...

If you ave looked at the order books on most crypto exchanges, you will notice that it doesn't take THAT much money to move the price.

Of course I am talking in relative terms here as it would take tens of millions of dollars to move the price which is more than many of us has to tinker around with.

That being said, when a big company like Microstrategy decides to invest $425 million into bitcoin, there is a very strong chance that they will impact the markets.

However, if you look back over the last couple weeks you will notice the price of bitcoin has actually been relatively calm, outside of one large drop.

So, how did they do it?

The CEO of Microstrategy went to Twitter today to let the world know how they were able to get that much money into BTC without causing a large price swing.

Here's how he did it:


1306636046948610049) twitter metadata:bWljaGFlbF9zYXlsb3J8fGh0dHBzOi8vdHdpdHRlci5jb20vbWljaGFlbF9zYXlsb3Ivc3RhdHVzLzEzMDY2MzYwNDY5NDg2MTAwNDkpfA== ~~~

While describing how he did it, it's still not entirely clear what he means by that.

For some added clarity, our good friend PlanB chimed in as well.

He added this:


1306601195721625600) twitter metadata:MTAwdHJpbGxpb25VU0R8fGh0dHBzOi8vdHdpdHRlci5jb20vMTAwdHJpbGxpb25VU0Qvc3RhdHVzLzEzMDY2MDExOTU3MjE2MjU2MDApfA== ~~~

In Layman's terms...

Basically it sounds like they used some sort trading system to slowly accumulate BTC over time.

I am sure the crash a few weeks back helped them accumulate a larger amount rather quickly.

The overall takeaway is big though, and exactly what PlanB was alluding to.

Regardless of exactly how they accumulated them the important thing is that they bought them from weak hands and are likely to be a very strong hand going forward.

This likely removes future selling pressure which ultimately will help bitcoin go even higher than it otherwise could have had they not gotten involved.

Stay informed my friends.


Posted Using LeoFinance


They didn't move the market because THEY WERE THE BID just under support. I posted on how bullish that trap would be if proven a trap. That was based on the technicals. This news is a non-technical explanation/confirmation. :-)

Let's see what it's good for.

Absorbed the weak hands... so... up we go. :)

Microstrategy are big, my company are customers of theirs. This is excellent news for bitcoin and crypto in general... Although mostly bitcoin :0D

When Bitcoin bubbles pretty much every alt project outperforms it... so I'd say this is better news for alts then even Bitcoin :D

Moves like this are the foundation of a mega-bubble... a mega-bubble that everyone's been predicting for the last 3 years based on the halving event.

I would normally agree but I have a stone cold fear this time that bitcoin will bubble and the DeFi coins will go ballistic with it and the sad old alts in my bags will bumble along at the bottom! :0D

Ha, no :D
Your alts are going to moon, friend.

People get really stupid when their investment goes x20.
Dumb money will fly everywhere when Bitcoin moons.

Here's to dumb mindset6!!! :0)

I am hoping for the best but in the back of my mind there is the feeling that this possibility could happen as well. Which is why I think HIVE needs to hedge its bets and gets some defi going as well...

It has seemed that way so far. I don't think it would harm us to get something going, anything properly and publicly DeFi just so that we are seen as an adaptable coin/chain suited to current times. I mean free transactions, what a draw!

The free transaction become a very good sell when combined with defi. Most defi investors are paying through the nose to use ethereum...

Yep, it's very big news. I fully expected investment funds, family offices, pensions, etc to eventually take a bitcoin allocation. I never expected fortune 500 companies to hold it on their balance sheets as a reserve asset...

78k off-chain transactions? wtf is an 'off-chain' transaction? Sounds like buying off exchanges to me, lol. Obviously any market-maker can acquire Bitcoin without moving the price because users just sell into the buy order.

Still it's very curious why he would use that language.

off-chain transactions

Why even bother making a nothing statement that just poses more questions?
Very strange.

Apparently Twitter and I concur.

There you go. Nice sleuthing!

I was wondering about that.

Thanks for the update.