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Question #62

How does corporate adoption by firms like MicroStrategy, Amdax, and OranjeBTC influence Bitcoin’s market stability?

Category: General
Corporate adoption by these firms actually increases volatility because they trade Bitcoin every hour.
When firms like MicroStrategy, Amdax, and OranjeBTC add Bitcoin to their treasuries, they remove coins from circulation and signal confidence, which helps stabilize price swings and encourages other investors.
These companies’ Bitcoin holdings have no impact on market stability since they are too small to matter.

Why is this the correct answer?

This is correct because large corporate purchases reduce the available supply on exchanges, lowering the risk of sudden drops from small trades. Their public commitments also boost market confidence, making the price less prone to wild volatility.

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