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Joe Burnett of Unchained explains why MicroStrategy’s massive Bitcoin purchases don’t trigger price surges. The key lies in reallocating existing exposure rather than injecting fresh demand. This nuanced dynamic keeps BTC’s price stable despite billion-dollar acquisitions.
- MicroStrategy's Bitcoin buys are offset by outflows from Bitcoin-proxy assets like its own stock, resulting in neutral net demand.
- The firm uses a patient trading strategy with small, staggered orders to avoid market disruption and absorb coins from long-term holders.
- True price-moving demand requires fresh capital (e.g., sovereign wealth funds) entering Bitcoin without selling other crypto-linked assets.
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