TD Cowen says Bitcoin (BTCOC) Bitcoin (BTCOC) has a little price impact on prices.

Although its increasing imprint is like the main company of the Bitcoin (BTC), the widely wide currency purchases seem to have a significant impact on its price, according to a research paper from TD Cowen.

The results published on Monday challenge a common theory among the skeptics – this aggressive forkmark of the strategy helps to support the value of Bitcoin, and that without continuing its demand, prices stumbled. But based on data, this medium does not carry a lot of weight, analysts said.

A large buyer, but a small slice of the market

The strategy recently released 1.8 million shares under its market supply, which raised an additional $ 842 million of net revenue. Money was used to buy 6556 Bitcoins, which enhances the company’s Bitcoin’s return for this quarter by 1 % to 12.1 %. However, when measured against the broader Bitcoin market, these purchases are just a decrease in a bucket.

According to the TD Cowen analysis, the bitcoin purchases of the strategy were usually only 3.3 % of the average weekly trading volume. Over the past 27 weeks, the company’s total activity has reached 8.4 % of the size – but this figure was deviant with a handful of weeks as its purchase increased for 20 %. In eight of those weeks, the strategy did not buy any bitcoin at all.

“Our conclusion is that in most periods, it does not seem reasonable that the purchases of strategy could have had a continuous physical impact on the price of bitcoin,” said TD Cowen analysts.

relationship? Not much.

The analysis also tested the relationship between Bitcoin strategic purchases and market prices – and found that it is statistically weak. The correlation coefficient between the Bitcoin’s weekly purchase of strategy and the BTC price at the weekend came only 25 %. When comparing purchases with weekly price changes, the link increased slightly to only 28 %.

The paper said that the correlation coefficient that is close to 0 indicates that there is no relationship or weakness, these results indicate a few or non-existent links between strategic procedures and short-term market movements-not to mention any kind of effect on continuous prices.

What about the superiority of miners?

Another common criticism is that the strategy often buys Bitcoin than it is extracted in a certain period, which means that it creates ascending pressure. Although the analysis shows this argument, this argument misunderstood how the Bitcoin market works.

During the past six months, the secondary Bitcoin trading exceeded the size of mining by 20 times. Even the removal of strategic purchases from the equation, the secondary market activity still exceeds the new supply by 17 times. In that environment, miners and buyers alike are the prices of prices – not independent.

TD Cowen said: “As we have seen, its purchases represent a very small percentage of the total Bitcoin trading volume; so the idea that it has a profound or even noticeable effect on Bitcoin’s action, it looks impatient,” TD Cowen said.

Building value, not noise

Although the impact of the strategy on the Bitcoin market may be exaggerated, the value that is created for shareholders is difficult to ignore.

Last week, purchases created an additional profit of 5,281 Bitcoins, which reached a quarter of a date of approximately $ 600 million. Since the beginning of 2023, the strategy of Bitcoin’s possessions increased by 306 %, with the expansion of its entirely diluted shares by 94 % – a strong offer for a company that uses Bitcoin as a strategic treasury asset.

With 1.53 billion dollars remaining in the capacity of the ATMs and approval of the Board of Directors to obtain a greater license for shares, the strategy is in a good position to continue this strategy-without disrupting the market itself.

“We expect the strategy to continue to push the positive BTC return for the foreseeable future. While BTC’s return will decrease to the extent that Bitcoin continues to rise in prices, the value of the dollar for additional gains from the treasury operations in the strategy may remain very beneficial to the shareholders.”

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