An intriguing exchange unfolded on social media platform X as Andrew Tate questioned the liquidity of Bitcoin after Strategy executed a substantial purchase of 10,624 BTC in a single day. Tate, who has previously voiced his support for Bitcoin, expressed surprise that such a significant buy did not lead to a notable price surge.
In response to Tate”s remarks, Binance founder Changpeng Zhao, commonly known as CZ, clarified the mechanics of Bitcoin“s market dynamics. He noted that the amount purchased by Strategy constitutes approximately one to two-thousandths of Bitcoin”s total market capitalization, which is insufficient to create substantial price fluctuations across global order books.
The evolution of the Bitcoin market has been remarkable, characterized by increased institutional engagement, higher trading volumes from spot exchange-traded funds, and enhanced liquidity across major trading platforms worldwide. As a result, large transactions, even those worth hundreds of millions of dollars, can be accommodated with minimal disruption to market prices, especially when carried out using algorithmic trading strategies.
Industry analysts point out that firms like Strategy often implement volume-weighted or time-weighted algorithms to spread buying activities across various exchanges. This approach helps mitigate slippage and avoids abrupt price changes. Currently, Bitcoin stands as a multi-trillion-dollar asset with robust liquidity, making it a decentralized commodity that can absorb large trades without significant impact.
Furthermore, single-day purchases, regardless of their magnitude, frequently align with ongoing institutional rebalancing efforts, ETF flows, miner sales, and global arbitrage activities. The continued accumulation of Bitcoin by Strategy throughout 2024 and 2025 is anticipated to gradually decrease the circulating supply, according to market commentators.
