Summary
- TD Cowen evaluated that Strategy's Bitcoin buying strategy has a minimal impact on prices.
- It stated that the correlation between Bitcoin purchase volume and price was only 25%.
- It reported that the value Strategy's buying strategy creates for its shareholders cannot be ignored.
American investment bank TD Cowen assessed in a report that the buying spree of Strategy (NASDAQ ticker: MSTR), which holds the most Bitcoin (BTC) among single companies, has minimal impact on Bitcoin prices.
According to cryptocurrency media outlet CoinDesk on the 21st (local time), the report analyzed that "although Strategy has invested billions of dollars in Bitcoin recently, this buying spree had little lasting impact on Bitcoin prices."
It continued, "Strategy's purchase volume was only 3.3% of the weekly average trading volume, and the correlation between weekly Bitcoin purchase volume and price was only 25%."
The report also added, "While the impact of Strategy on the entire Bitcoin market may have been exaggerated, the value this strategy creates for its shareholders cannot be ignored."
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
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