Analysis Debunks Strategy’s Influence on Bitcoin Prices; SEC’s New Chairman Promises Clarity

Matthew Sigel from Vaneck has challenged the belief that Strategy (formerly Microstrategy) significantly impacts bitcoin prices, revealing weak correlations in market data. As of now, Strategy’s market influence remains minimal. In related news, new SEC Chairman Paul S. Atkins aims to bring clear regulations for digital assets, promising to foster industry growth while facing scrutiny over potential conflicts of interest.

A leading expert in digital assets, Matthew Sigel of Vaneck, has questioned the common belief that Strategy, previously known as Microstrategy, significantly influences bitcoin prices. Sigel presented his findings on social media, indicating that Strategy’s market impact has been minimal due to weak correlations with bitcoin trading volumes. In his analysis, he noted that Strategy accounted for a mere 3.3% of total market volume for most weeks, indicating little market influence.

Despite Strategy’s aggressive acquisition of 6,556 BTC for about $555.8 million, Sigel asserts that there is no substantial correlation between the firm’s weekly purchases and bitcoin’s price fluctuations. He reported a correlation coefficient of just 25% for end-week prices and 28% for changes over the week. Furthermore, Sigel argues that external market activities have a more significant impact on bitcoin’s valuation than corporate efforts or mining activities.

In a related update, the SEC welcomed new chairman Paul S. Atkins, signalling a potential shift towards clearer regulations for digital assets. Appointed on April 21, Atkins aims to establish a transparent regulatory environment to foster market growth. His previous experience includes roles in financial advisory and at the SEC, where he advocated for transparency in rulemaking.

Atkins has expressed ambitions to collaborate with fellow commissioners to create a solid regulatory framework for digital assets. His appointment has garnered support from the cryptocurrency community, with Ripple’s CEO highlighting the need for sensible regulation. However, some critics are wary of his connections to crypto firms, raising concerns about potential conflicts of interest and investor protections.