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1) Some people are asking how Micro Strategy got so much sell-side liquidity.

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One thing that's been bugging me is that Micro Strategy bought $425 mil and price really didn't go up much. I'd honestly expect price to do anything but randomly drop/chop sideways after an event like that.

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2) it was ~$400m. How much impact does that have? Hard to know for sure, and it obviously depends. On March 12th, ~$1b of liquidations probably had ~20% of impact. That's terrible execution at a terrible time. BitMEX has ~$20m/%, which lines up.

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3) what if you do it slowly during a quieter time? Well, one quick and dirty estimate: impact ~ daily vol * sqrt(size / ADV). Here, that's roughly 1% * sqrt($400m/$10b) or so; so maybe like 1% * 20% =.... ....0.20%? That's 100x lower!

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4) alright, how about in practice? Well, my totally bullshit instinct, based on nothing, is "idk, 5%?" So if you do something that has 5% impact over a few day period on BTC... ...if you're not looking for it, you'd miss it. If you *are* looking for it, it's obvious though.

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5) does anyone know when they bought? How did BTC perform those days? How did ETH perform? Did BTC do worse than ETH?

10:58 PM · Sep 20, 2020Twitter Web App

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@The_Crypto_Puma

It takes longer. Just like Tudor Jones buying with his 1% wealth didn’t kick in till few months

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and

From his feed

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To acquire 16,796 BTC (disclosed 9/14/20), we traded continuously 74 hours, executing 88,617 trades ~0.19 BTC each 3 seconds. ~$39,414 in BTC per minute, but at all times we were ready to purchase $30-50 million in a few seconds if we got lucky with a 1-2% downward spike.

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Hm they're "disclosing" it on the 14th--not sure that means they bought it on the 14th?

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and

CEO @michael_saylor already addressed this, here, and in a few other tweets:

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To acquire 16,796 BTC (disclosed 9/14/20), we traded continuously 74 hours, executing 88,617 trades ~0.19 BTC each 3 seconds. ~$39,414 in BTC per minute, but at all times we were ready to purchase $30-50 million in a few seconds if we got lucky with a 1-2% downward spike.

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**careless whisper sax solo**

@deathreaver20xx

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and

btc outperformed eth during that period

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and

HA, thx for the thread

I was having a look over the weekend but wasn't sure enough of my findings to post a thread, I agree with what you said and it matches what they described. Apart from the March event then, what usually drives BTC volatility in your opinion ?

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Replying to

and

The Ark study (pt2) does a good job estimating price fluctuations with large buy/sell orders.