{"id":1535656,"date":"2025-05-12T21:00:00","date_gmt":"2025-05-13T01:00:00","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1535656"},"modified":"2025-05-12T21:00:00","modified_gmt":"2025-05-13T01:00:00","slug":"bitcoin-now-deflationary-due-to-strategys-btc-purchases","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/bitcoin-now-deflationary-due-to-strategys-btc-purchases\/1535656\/","title":{"rendered":"Bitcoin Now Deflationary Due To Strategy’s BTC Purchases"},"content":{"rendered":"

Bitcoin Now Deflationary Due To Strategy’s BTC Purchases<\/span><\/p>\n

\n

Authored by Vince Quill via CoinTelegraph.com,<\/em><\/a><\/p>\n

Strategy, a Bitcoin treasury company, is accumulating Bitcoin at a faster rate than total miner output, giving the supply-capped asset a -2.33% annual deflation rate, according to CryptoQuant CEO and market analyst Ki Young Ju.<\/p>\n

\u201cTheir 555,000 BTC is illiquid with no plans to sell,\u201d<\/strong><\/em> the analyst wrote in a May 10 X\u00a0post<\/a>.<\/p>\n

\u201cStrategy’s holdings alone mean a -2.23% annual deflation rate \u2014 likely higher with other stable institutional holders,\u201d Ju continued.<\/em><\/p>\n

<\/a><\/p>\n

Michael Saylor, the co-founder of Strategy, is an outspoken Bitcoin advocate who\u00a0evangelizes the scarce digital currency<\/a>\u00a0to potential investors and has inspired many other companies to\u00a0adopt a Bitcoin treasury plan<\/a>.<\/p>\n

<\/a><\/p>\n

The total BTC supply is shrinking due to Strategy accumulating Bitcoin. Source:\u00a0<\/em>Ki Young Ju<\/em><\/a><\/p>\n

Additionally, Strategy acts as a bridge between Bitcoin and traditional financial (TradFi) markets by funneling funds from TradFi investors into Bitcoin through selling corporate debt and equity, which the company uses to finance more BTC purchases. According to Michael Saylor, over\u00a013,000 institutions hold Strategy stock directly<\/a>\u00a0in their portfolios.<\/p>\n

Bitcoin investors continue to watch the company and its effect on Bitcoin market dynamics. Strategy leads the charge toward institutional adoption of Bitcoin, further restricting the supply of available coins and raising BTC prices, while dampening volatility.<\/p>\n

Strategy and corporate institutions change the Bitcoin market dynamic<\/h2>\n

Adam Livingston, author of “The Bitcoin Age and The Great Harvest,” recently said that\u00a0Strategy is synthetically halving Bitcoin<\/a>\u00a0by outpacing miner supply through high demand.<\/p>\n

According to the author, the current collective daily miner output is approximately 450 BTC, while Strategy accumulates an average of 2,087 BTC per day, over four times the daily miner production.<\/strong><\/p>\n

<\/a><\/p>\n

Miner reserves are dwindling and are in a long-term decline. Source:\u00a0<\/em>CryptoQuant<\/em><\/a><\/p>\n

Other institutions, including hedge funds, pension funds, asset managers, and tech companies,\u00a0continue buying BTC<\/a>\u00a0as a portfolio diversifier or a treasury asset to hedge against fiat currency inflation.<\/p>\n

ETF inflows have also helped to stabilize Bitcoin’s price by\u00a0injecting fresh capital<\/a>\u00a0from traditional financial markets, smoothing out the volatility of Bitcoin and making downturns less severe.<\/strong><\/p>\n

<\/a><\/strong><\/p>\n

However, the most august institutional players \u2014 sovereign wealth funds \u2014 will not ramp up Bitcoin purchases until\u00a0clear cryptocurrency regulations are established<\/a>\u00a0in the United States, according to SkyBridge founder Anthony Scaramucci.<\/p>\n

Once a comprehensive regulatory framework emerges in the US, it will trigger large blocks of Bitcoin purchases by sovereign wealth funds, increasing Bitcoin’s price, Scaramucci added.<\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nMon, 05\/12\/2025 – 17:00<\/span><\/p>\n

\u200bhttps:\/\/www.zerohedge.com\/crypto\/bitcoin-now-deflationary-due-strategys-btc-purchases<\/a>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

Bitcoin Now Deflationary Due To Strategy’s BTC Purchases Authored by Vince Quill via CoinTelegraph.com, Strategy, a Bitcoin treasury company, is accumulating Bitcoin at a faster…<\/p>\n","protected":false},"author":0,"featured_media":1535657,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1535656","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1535656","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1535656"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1535656\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media\/1535657"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1535656"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1535656"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1535656"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}