The Bitcoin community is divided as MicroStrategy buys 10,000 BTC without the price moving — OTC liquidity and market structure are questioned
Andrew Tate asked why MicroStrategy was able to buy about 10,000 BTC without the price of Bitcoin changing. His post sparked a large debate within the crypto world. The question shows that many small investors are confused: how can such a large transaction occur without impacting the market?
Debate in the community shows misunderstandings about the depth of the Bitcoin OTC market
Andrew Tate initiated the debate a few days after MicroStrategy bought over 10,600 BTC. This transaction was worth nearly one billion USD and the company's holdings rose to over 660,000 BTC.
Despite the large purchase, Bitcoin barely moved then. The price remained between 88,000 and 92,000 USD and only increased today.
Several people in the industry responded that institutions rarely trade directly on the exchange. Instead, they use over-the-counter (OTC) desks that connect buyers and sellers outside of regular markets.
Therefore, these transactions do not appear directly in order books or price charts. They avoid slippage and do not affect the price right away.
This means that a transaction of one billion USD can be quietly distributed among miners, early investors, market makers, and sellers in distress, without the price going up immediately.
Buyers first go to open exchanges when the OTC inventory is not enough. Then the price is affected. MicroStrategy can buy quietly because Bitcoin has a lot of liquidity at today's levels.
Bitcoin price moves less by size, more by how one trades.
Several analysts say that MicroStrategy's purchases seem large, but they are a small part of the supply.
Buying 10,000 BTC is only about 0.05% of what is circulating. When it occurs through private block trades, it is almost invisible.
This shows that companies can buy more Bitcoin even when the market is stagnant. Many notice it only afterward.
Critics argue that MicroStrategy's strategy is based more on image than effect. Some believe that the company is advertising to get people to be positive, not to directly affect the price.
The lack of reaction makes some suspect that such large purchases affect less than investors think.
This discussion takes place during a sensitive time. The market first took off today, after a week without movement — but not thanks to MicroStrategy, rather due to increased activity from large investors, forced sales, and regulatory news.
The difference shows that clear price movements often depend on late transactions, not on the original purchase.
