Various reports say publicly-traded companies hold over 800,000 Bitcoins. 75% of those Bitcoins belong to Strategy฿. The company bought most of its stash in the past eight months, almost entirely with other people’s money. (Assuming its website is accurate.) its website Those purchases have tapered off since January. Smaller buys with each round. Why is the pace slowing down? What does that say about the insatiable institutional appetite the gurus keep talking about? How confident are you that the trend will reverse? Can they keep it up? We know competing funds and companies have bought $10–20 billion this year. Surely, more funds and companies have raised money for their purchases beyond the $10–20 billion we know of. How much more do they want to buy? Of those who bought, what would make them want to buy a substantially larger amount? Every day, I hear about some company buying $2 million or $10 million. A little here, a little there, and pretty soon you’re talking about big money — but that assumes they never sell any AND they have an appetite for more. never Saylor alone bought $4 billion since the start of last month. since the start of last month Am I the only one who wonders if Michael Saylor is essentially the “institutions” you’re hearing so much about? Could Strategy฿ have soaked up the bulk of interest from legacy investors? Can we expect to see a gradual decline in interest over time? Funny thing… Also, note how an MSTR announcement has capped every upswing since the May peak. This raises the question: have one or a few large entities taken positions based on Saylor’s actions? We don’t know how many people have taken out long positions in spot markets or through the ETFs to hedge shorts against MSTR or a related derivative. This can happen regardless of any pattern in Bitcoin’s price at any time, but the coincidence made me wonder if there’s something else to it. With such little volume, it wouldn’t take much to move the market. This would also explain the divergence in Bitcoin’s moves from those of the altcoin market (sideways for BTC, down for altcoins). Nobody with enough size to swing Bitcoin’s price would bother with altcoins (and probably could not find enough liquidity anyway). It’s all speculation. These activities happen behind closed doors, off-chain. If all goes well for the participants, we’ll never know what they did — they’ll take their money and go their merry way. But it creates a risk. If there’s a lot of leverage betting against MSTR and the stock price moves too much, too fast, those investors will sell their Bitcoin positions, potentially tanking the market. I discussed this topic and others in a recent post for subscribers of my newsletter, Crypto is Easy. Head over to learn more. Crypto is Easy Crypto is Easy https://cryptoiseasy.beehiiv.com/?embedable=true https://cryptoiseasy.beehiiv.com/?embedable=true Mark Helfman publishes the Crypto is Easy newsletter. He is also the author of three books and a top Bitcoin writer on Medium and Hacker Noon. Learn more about him in his bio and connect with him on Calendly. Crypto is Easy Crypto is Easy Medium Medium Hacker Noon Hacker Noon bio Calendly

This story contains new, firsthand information uncovered by the writer.

Psychology of the Banana Zone

ETH ETF Inflows Are Surging. Why Aren't You Seeing the Gains?

Crypto is Easy Newsletter

Nominated for 2022 - HackerNoon Contributor of the Year - Cryptocurrency

Nominated for 2022 - HackerNoon Contributor of the Year - Investing

Nominated for 2022 - HackerNoon Contributor of the Year - Bitcoin

Nominated for 2022 - HackerNoon Contributor of the Year - Crypto Trading

Nominated for 2022 - HackerNoon Contributor of the Year - Money

Too Long; Didn't Read

Is Saylor running out of steam?

Is Saylor running out of steam?

About Author

Comments

TOPICS

THIS ARTICLE WAS FEATURED IN

Related Stories

Untitled Story

2020 is The Year Wall Street Could Take Over Cryptocurrency

06/09/2018: Biggest Stories in the Cryptosphere

06/02/2018: Biggest Stories in the Cryptosphere

05/02/2018: Biggest Stories in the Cryptosphere

0 to Pro Crypto Trader: Your Ultimate Guide to Bitcoin and Altcoin Investing

2020 is The Year Wall Street Could Take Over Cryptocurrency

06/09/2018: Biggest Stories in the Cryptosphere

06/02/2018: Biggest Stories in the Cryptosphere

05/02/2018: Biggest Stories in the Cryptosphere

0 to Pro Crypto Trader: Your Ultimate Guide to Bitcoin and Altcoin Investing

Light-Mode

Classic

Newspaper

Dark-Mode

Neon Noir

Minty

HN StartUps