Dec 10, 2025
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Strategy’s $1 Billion Bitcoin Purchase Fails to Trigger Price Rally
Strategy's recent acquisition of 10,000 Bitcoin worth $1 billion did not lead to a price rally due to its execution through over-the-counter (OTC) desks. This method keeps transactions off public exchanges, maintaining price stability.
The Mechanics Behind Institutional Bitcoin Purchases
- OTC desks facilitate large-scale transactions outside real-time order books, preventing visible market impact.
- These transactions involve private liquidity sources such as miners, VCs, and corporate treasuries.
- Large orders are spread out over time, ensuring a smooth settlement without affecting price charts.
Understanding Shadow-Side Demand
- Institutional purchases occur in private channels to avoid slippage and volatility.
- OTC infrastructure ensures execution quality and market stability by keeping trades off public exchanges.
- Public charts often reflect sell pressure but not institutional buying, which is intentionally kept hidden.
Strategy’s $1 billion allocation was designed to maintain market integrity without causing price fluctuations.
