"The price dips after Saylor buys." Well, duh... If you buy billions of dollars worth of Bitcoin, it pushes the price up unnaturally, then as normalcy sets in the price comes back down. Still, every time Saylor buys I see people on X saying he should do surprise buys or other comments like that... Unfortunately, even if you pop out of the bushes and surprise the market with a buy out of nowhere, the price still gets pushed up and then settles back down again. Is this not common sense?
Saylor with the help of Coinbase implement TWAP( time weighted average price) by buying in small orders in a way it won't impact the market much and could take days to complete.
Yes large buys increases prices but people sell to take profit since they know the rise is temporary and in the case of saylor they sell the news.
I don't see the common sense in the "then settles back down again" bit. You are assuming a "locally unlimited" supply, is my impression.
Of course I might be wrong - I often am - so a more detailed explanation could help me see what you mean (and maybe Torque too, from a different angle).
in summary Price correct itself to meet demand and supply in this case on order book.
Take for example there are two buyers and five sellers
Seller one wants to sell for $10
Seller two wants to sell for $20
With $10 increment till seller 5 assuming they all have 2 unit each.
Buyer one wants to buy 6 unit and has the money
When he exhaust seller one goods, the next available price is seller 2, He continues this cycle until he gets all 6. In the process the market price became $30(seller three price).
Now we have seller four and five with higher price set but the only buyer now available is buyer 2 who wants to buy at $20.
There's a gap Now and if the seller needs to sell then he has to sell at buyers price hence a fall and correction.
P.S could be flawed