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21 sats \ 11 replies \ @badabing 15 Feb \ on: ETF Inflows and BTC Price correlation bitcoin
Even if they buy OTC, it still removes (a lot of) supply from the market and will have an effect on price.
Let s try to be more visual…
Blackrock buys shit ton of btc, decreasing the supply… but doesn t buy anything « on the market »
Then the market orders show buyers and sellers, and these orders are not affected by the diminished supply since this supply is the exchange reserve…
if the supply / demand had an effect on the « public market » there would be no point to trade over the counter, don t you think?
I agree with the supply demand effect but this effect only have consequences when trades happen!
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Yes it is trading, but off grid… it s an agreed transaction between the exchange and the client, compared to have the client buying from another client. So instead of buying the btc from another holder, they buy from coinbase « reserve ». That transaction’s volume is then not accounted in the daily public trading volume. Once again , blackrock and coinbase find an agreement on a price and transact , out of the market. So thiese blackrock volumes shouldn’t impact the btc « public price »
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