Why is ongoing Bitcoin accumulation by companies like MicroStrategy significant for overall market stability?
Why is this the correct answer?
When large companies like MicroStrategy buy and hold Bitcoin, they lock up supply that would otherwise be available to sell. Beginners should understand that this reduction in circulating coins can smooth out extreme price swings, since a major holder isn’t selling when markets dip. Their ongoing purchases also signal faith in Bitcoin’s future, which can boost overall market confidence.
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