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Analysis: Bitcoin has turned to deflation due to Strategy purchases.
According to ChainCatcher news reported by Cointelegraph, CryptoQuant CEO Ki Young Ju analyzed that the Strategy is accumulating Bitcoin at a rate higher than the miners’ output, resulting in an annual deflation rate of -2.33%. The Strategy holds 555,000 BTC and has no intention of selling; its holdings alone cause an annual deflation rate of -2.23%. Strategy brings traditional financial capital into the Bitcoin market by selling corporate debt and equity, accumulating an average of 2,087 BTC daily, far exceeding the 450 BTC mined daily by miners. Michael Saylor, as a co-founder of Strategy, actively promotes Bitcoin adoption among institutions, with over 13,000 institutions directly holding its shares. In addition, ETF inflows have stabilized Bitcoin prices and reduced volatility. However, SkyBridge founder Anthony Scaramucci stated that sovereign wealth funds will not make large-scale purchases of Bitcoin until there is a clear regulatory framework for cryptocurrencies in the United States. Once regulation is clear, it is expected to drive Bitcoin prices further up.