INSTITUTIONAL STRATEGY AND BITCOIN ACCUMULATION.
What many do not see is that the accumulation of Bitcoin by large institutions does not always cause the price to rise.
👉 Michael Saylor, for example, continues to buy and withdraw Bitcoin from exchanges constantly, but the price can remain controlled. Why?
🪙 Because there are financial instruments that allow the generation of synthetic or paper Bitcoin.
▫️Futures, perpetual contracts, and options are strategically used to maintain downward pressure while accumulating real Bitcoin.
👨💻 These instruments allow for the sale of 'Bitcoin' that is not actually owned, generating derivatives and temporarily manipulating the price of the underlying asset.
It is a strategy similar to that historically used in metals like gold.
🏦 For example, in 2020 J.P. Morgan sold contracts for metals it did not own to keep the price stagnant, and although it later received a fine of 920 million dollars, the profit obtained was much greater, close to 20,000 million.
This demonstrates why it is done: with sufficient capital, pressure can control the price.
🪙 In Bitcoin, the dynamics are similar:
▫️The more that is extracted from the market, the less real supply is available.
▫️Institutions use derivatives to keep prices low and buy cheaper.
👉 Understanding this, we can see that what appears to be a drop or stagnation in the market is often an ACCUMULATION STRATEGY, not a structural problem of the asset.
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