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Andrew Tate Questions Bitcoin’s Pricing, CZ Explains
Internet influencer Andrew Tate, in an X post, has poked holes in Bitcoin’s pricing after a mega purchase by Strategy (MSTR) did not lead to any rally for the asset.
At the start of the week, Strategy announced that it splurged $962.7 million to acquire 10,624 BTC. Despite the haul, CoinMarketCap data revealed sideways trading for the asset with Bitcoin barely logging 1% gains, leaving investors scratching their heads.
“I’m huge on BTC, but MicroStrategy buys 10k BTC in a single day, and the price doesn’t move,” said Tate. “Explain that to me.”
Tate’s comment elicited a debate with Binance founder CZ wading in to proffer an explanation. According to CZ, Strategy’s purchase represents only a fraction of Bitcoin’s market capitalization and is not enough to trigger a major rally given the growing liquidity of the asset class.
“Buying 1/2000th of the market cap usually does not cause much waves,” said CZ. “BTC is liquid.”



 For context, Strategy’s 10,624 BTC purchase for nearly $1 billion makes up 0.054% of the asset market capitalization. In previous cycles, previous $1 billion purchases have triggered massive price rallies for BTC, with Tesla’s $1.5 billion purchase in early 2021 triggering a frenzy. However, despite Bitcoin’s growing liquidity, a sell-off of similar magnitude can still cause prices to slump, as shown by recent profit-taking by investors.
OTC Desks Purchases Rarely Move Prices
Crypto analyst Quinten Francois, in an X post, theorized that the use of over-the-counter (OTC) desks by institutions seeking Bitcoin purchases can explain the asset’s sideways trading. Francois notes that OTC desks typically pair buyers and sellers outside exchanges, ensuring that trades do not go through order books.
Per Francois, a single request by an institution seeking 5,000 BTC may take weeks to fulfill, with the OTC desk reaching out to miners and early whales willing to sell their holdings. He noted that OTC desks reach in “deep private liquidity” unseen by retail traders, with everything happening “quietly behind closed doors.”
“Only when they cannot source enough Bitcoin privately do OTC desks touch the open market, and that is always the last resort,” said Francois. “They stretch the process as long as possible to prevent price impact.”
