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Topic: Are Institutional investors changing the Bitcoin price behaviour? (Read 349 times)

sr. member
Activity: 1190
Merit: 250
Trends and investor behavior will always change, nowadays many institutions invest in bitcoin so when they get a small increase they immediately sell, this is what is difficult to see the price skyrocketing significantly like a few years ago, in general of course this is more good because when the price is red there will be a buying action in large quantities so that it can keep it from dropping too much.
hero member
Activity: 1106
Merit: 912
Not Your Keys, Not Your Bitcoin
I wonder if we are going to see higher manipulation than whatever we are feeling already about it but whales only do what is needful for their business and smaller buyers or individuals have to follow them by the chart. If you notice a huge buy in the chart that means to expect more buy and price will appreciate and that follows down too. I don't think institutional buyers are going to be a problem with the bitcoin behavior.

The whales always rule the market, it's a fact that you see in every market. Let's say, for example, we have some wallets addresses that have bitcoin locked on them for many years that has not been moved by the real owners, the moment the private key owner desire to spend from thus wallet always create this fear among holders and speculators that the early birds are trying to cash out, the whales will want to sell at the top and use the opportunity to buy at lower price maximizing their hodl and that's how the fear will naturally create a panic sell in the market.

Again, of what used is Bitcoin to institutional if they don't have the chance to buy on low price and  if the price of Bitcoin doesn't go up over time, try will do whatever they feel is good for them as long as their money is involved.
legendary
Activity: 2898
Merit: 1253
So anyway, I applied as a merit source :)
The main difference are the regulations, in a centralized market governments can set rules for economic actors to follow, we know they will try their best to find loopholes but at least in theory there are some impediments in their path so they cannot easily do this, in this market such a thing is not possible due to its decentralized nature, however I prefer it this way, this market is really free and we know that free markets will always outperform controlled markets, which in part explains the incredible growth we have seen in this market during the last decade.
Centralized market will be regulated but the point is that the decentralized markets remain and those are the ones that need to be regulated. See every American cannot manage their own assets, unlike the rest of the world can. So they need some legal backing and clarity on these assets as per their narrative. Hence the need for regulation. I consider this as a good step overall for the long run for crypto. While this will mean a tougher situation for developers, it will also weed a large chunk of non-sense scams that keep on going around in this sector.

You cannot stay away from government's crackdown if you are living in their land. But it will be for our good only.
hero member
Activity: 2310
Merit: 532
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Manipulation - that is definitely a risk for bitcoin and the crypto space.  Not necessarily institutional investors like MicroStrategy, Tesla, ....  but also possibly an association, rapidly changing price behavior is also part of the reason for this.

I wonder if we are going to see higher manipulation than whatever we are feeling already about it but whales only do what is needful for their business and smaller buyers or individuals have to follow them by the chart. If you notice a huge buy in the chart that means to expect more buy and price will appreciate and that follows down too. I don't think institutional buyers are going to be a problem with the bitcoin behavior.
At the same time it is also to be noted that these large scale institutional investors serve as influencers in adoption of bitcoin. More the usage more will be the growth. When some institutional investor makes his entry it is also a kind of accumulation. When more such investors combine together the holding will form a large percentage of the total supply. This lets them manipulate the market to some extent and that is reason it how at times the price behaviour is being changed, but this don't make a big impact as people are well aware of such activities.
legendary
Activity: 2660
Merit: 1074
Manipulation - that is definitely a risk for bitcoin and the crypto space.  Not necessarily institutional investors like MicroStrategy, Tesla, ....  but also possibly an association, rapidly changing price behavior is also part of the reason for this.
I wonder if we are going to see higher manipulation than whatever we are feeling already about it but whales only do what is needful for their business and smaller buyers or individuals have to follow them by the chart. If you notice a huge buy in the chart that means to expect more buy and price will appreciate and that follows down too. I don't think institutional buyers are going to be a problem with the bitcoin behavior.
Yes, we can see higher manipulation the more money that will be injected in to this market. BTC is getting popular and expect that many new institutions will enter. What we are feeling now is not heavy but there is more heavier to come, let's brace ourselves if that event comes but if you already know what to do or you know their pattern already, you could worry less but you can go with flow with them and you will be just fine.

You are not going to lose but your going to earn some profit. For some they are not a problem but there are some that thinks the opposite. Those people are the ones that need to adjust because they are smaller.
legendary
Activity: 3234
Merit: 5637
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When news began to emerge about some US companies starting to invest in Bitcoin, it seemed that this might be the beginning of something that would spread around the world and that big money would move in the direction of Bitcoin. Yet I don’t see that happening, and as things currently stand Bitcoin is behaving in the same pattern as after every past ATH, which again followed after every halving. We can discuss whether institutional investors have influenced the price not to be lower than it is today, but what we know for sure is that they have failed to reduce volatility.

Furthermore, the question arises whether it is realistic to call Bitcoin safe haven at all, although if we look at the long term, it is difficult to find someone who regretted investing in Bitcoin two or 5 years ago. When (if) greedy guys one day gain most of the BTC, of course, they will start playing their games in which the little man will not have much influence - but this is a problem that has existed for a long time since people started accepting Bitcoin as some kind of digital gold, not as a cryptocurrency.
hero member
Activity: 2660
Merit: 630
Vave.com - Crypto Casino
Manipulation - that is definitely a risk for bitcoin and the crypto space.  Not necessarily institutional investors like MicroStrategy, Tesla, ....  but also possibly an association, rapidly changing price behavior is also part of the reason for this.

I wonder if we are going to see higher manipulation than whatever we are feeling already about it but whales only do what is needful for their business and smaller buyers or individuals have to follow them by the chart. If you notice a huge buy in the chart that means to expect more buy and price will appreciate and that follows down too. I don't think institutional buyers are going to be a problem with the bitcoin behavior.
hero member
Activity: 2884
Merit: 794
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As you said most markets go through periods of manipulation, after all if an entity is big enough to do this then it would be naive to think they are not going to take advantage of it, however while in centralized markets rules and regulations are born to try to hinder this, in the market of cryptocurrencies that very same freedom that allows an actor to attempt to manipulate the price if they want allows another actor which is even more powerful to do the opposite and beat the manipulator at their own game.
When it comes to manipulation then there would be no exemption whether you are dealing with centralized or decentralized things as long there's a market then there would be always the tendency that

these big guys would really be taking advantage on the market via manipulation which we should really be looking it upon and you should take your decisions carefully.

This market is a bit decentralized on which funds could really come and go easily without those hindrance compared on centralized platforms.
The main difference are the regulations, in a centralized market governments can set rules for economic actors to follow, we know they will try their best to find loopholes but at least in theory there are some impediments in their path so they cannot easily do this, in this market such a thing is not possible due to its decentralized nature, however I prefer it this way, this market is really free and we know that free markets will always outperform controlled markets, which in part explains the incredible growth we have seen in this market during the last decade.
full member
Activity: 812
Merit: 108
Manipulation - that is definitely a risk for bitcoin and the crypto space.  Not necessarily institutional investors like MicroStrategy, Tesla, ....  but also possibly an association, rapidly changing price behavior is also part of the reason for this.
hero member
Activity: 2968
Merit: 687
Will Bitcoin still be a Safe haven when institutional money takes over the majority of the ownership of bitcoins and these people start to manipulate it in the same way that they are manipulating other markets?
If you feel that other markets are candidate to manipulation by institutions then bitcoin as well a candidate to them, we cannot do anything about that. Moreover, bitcoin market is a complete open market (it is like some countries stock markets do follow a practice of phasing their trading for few hours if market falls certain percentage within a day which is definitely not possible in bitcoin market), hence you cannot think about zero manipulations.

In my opinion, manipulations are just part of every market hence change of behaviour of fluctuations of bitcoin market due to intuitions is definitely normal one and we must need to get used to it as influence of intuitions will get more intensified in coming days in entire crypto space.
As you said most markets go through periods of manipulation, after all if an entity is big enough to do this then it would be naive to think they are not going to take advantage of it, however while in centralized markets rules and regulations are born to try to hinder this, in the market of cryptocurrencies that very same freedom that allows an actor to attempt to manipulate the price if they want allows another actor which is even more powerful to do the opposite and beat the manipulator at their own game.
When it comes to manipulation then there would be no exemption whether you are dealing with centralized or decentralized things as long there's a market then there would be always the tendency that

these big guys would really be taking advantage on the market via manipulation which we should really be looking it upon and you should take your decisions carefully.

This market is a bit decentralized on which funds could really come and go easily without those hindrance compared on centralized platforms.
hero member
Activity: 2884
Merit: 794
I am terrible at Fantasy Football!!!
Will Bitcoin still be a Safe haven when institutional money takes over the majority of the ownership of bitcoins and these people start to manipulate it in the same way that they are manipulating other markets?
If you feel that other markets are candidate to manipulation by institutions then bitcoin as well a candidate to them, we cannot do anything about that. Moreover, bitcoin market is a complete open market (it is like some countries stock markets do follow a practice of phasing their trading for few hours if market falls certain percentage within a day which is definitely not possible in bitcoin market), hence you cannot think about zero manipulations.

In my opinion, manipulations are just part of every market hence change of behaviour of fluctuations of bitcoin market due to intuitions is definitely normal one and we must need to get used to it as influence of intuitions will get more intensified in coming days in entire crypto space.
As you said most markets go through periods of manipulation, after all if an entity is big enough to do this then it would be naive to think they are not going to take advantage of it, however while in centralized markets rules and regulations are born to try to hinder this, in the market of cryptocurrencies that very same freedom that allows an actor to attempt to manipulate the price if they want allows another actor which is even more powerful to do the opposite and beat the manipulator at their own game.
legendary
Activity: 2338
Merit: 1124
Will Bitcoin still be a Safe haven when institutional money takes over the majority of the ownership of bitcoins and these people start to manipulate it in the same way that they are manipulating other markets?
If you feel that other markets are candidate to manipulation by institutions then bitcoin as well a candidate to them, we cannot do anything about that. Moreover, bitcoin market is a complete open market (it is like some countries stock markets do follow a practice of phasing their trading for few hours if market falls certain percentage within a day which is definitely not possible in bitcoin market), hence you cannot think about zero manipulations.

In my opinion, manipulations are just part of every market hence change of behaviour of fluctuations of bitcoin market due to intuitions is definitely normal one and we must need to get used to it as influence of intuitions will get more intensified in coming days in entire crypto space.
legendary
Activity: 2828
Merit: 1515
Now, we know the Bitcoin price has not been phased much, when Wall Street and global markets have shown movement. These markets are used by large investors that are very trigger happy with the slightest volatility.


I don't think anythings changed that much price strength wise since larger investors came into the bitcoin space.

I think whenever institutions start buying and selling we might see more dramatic volume increases but institutions like to compete with each other so it's likely these will be done over the counter or both executed at the same time so it might just effect the volume.

This couldn't be further from true. The larger players, ie institutional investors could divest from Bitcoin and sink the price because of the lack of mass adoption. Large part of the growth over the last two years were large investment firms and private companies dumping their assets into crypto.

Tesla isn't an institutional financial firm, but to get an idea of their influence, Elon Musk can send one tweet regarding Tesla's bitcoin stockpile, and it would send the price tumbling.


If the financial guys were to all pull out for whatever reason, the impact would be huge.
legendary
Activity: 3122
Merit: 1102
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Do you think as the injection of institutional money increase, that we will see more irrational price movement that are synchronized with global market movements?
It all depends upon how much money is pumped into the market and if you consider the cryptocurrency market as an asset then they will not synchronize the global stock market to the cryptocurrency market, instead i expect them to hedge over the other in case of one market is tumbling and wise versa.

Will Bitcoin still be a Safe haven when institutional money takes over the majority of the ownership of bitcoins and these people start to manipulate it in the same way that they are manipulating other markets?
This is the most volatile market in the entire financial sector and unlike other markets where you can really understand certain market movements it is not possible to even predict when a market moved in the cryptocurrency space as it is purely speculative in nature and nothing else. You cannot call a speculative market a safe heaven according to any economic standards Wink Cheesy.

very well-said. i don't think we can consider the crypto market or btc market to be a safe haven for your investments. up until now, volatility is one major attraction why people are going into crypto. this is where they are taking their chances to earn good profits if you know what you're doing, but will suffer a loss if you made a mistake with your trading strategy. this is by no means can be categorised as safe haven.
on the other hand, institutional investors are giving some sort of assurance to crypto users that bitcoin will stay and continue to grow its market.
hero member
Activity: 2086
Merit: 575


 Considering we just did a %10 in a very quick period of time and then a bit more later, do you think that it was all retail investors? I believe that this is the exact impact of the corporations who put money into crypto, all those hedge funds and companies and so forth that buys bitcoin could do it in big big numbers, like billions of dollars easily. Just the gamestop chaos showed us that big hedge funds could get together to have billions of dollars thrown out to garbage to show their power. So when they all buy at the same time, or even one big one buys, then the price could go up very quickly, then retail will see the pump and have FOMO and buy some more to increase it some more.
hero member
Activity: 2814
Merit: 911
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Do you think as the injection of institutional money increase, that we will see more irrational price movement that are synchronized with global market movements?
It all depends upon how much money is pumped into the market and if you consider the cryptocurrency market as an asset then they will not synchronize the global stock market to the cryptocurrency market, instead i expect them to hedge over the other in case of one market is tumbling and wise versa.

Will Bitcoin still be a Safe haven when institutional money takes over the majority of the ownership of bitcoins and these people start to manipulate it in the same way that they are manipulating other markets?
This is the most volatile market in the entire financial sector and unlike other markets where you can really understand certain market movements it is not possible to even predict when a market moved in the cryptocurrency space as it is purely speculative in nature and nothing else. You cannot call a speculative market a safe heaven according to any economic standards Wink Cheesy.
hero member
Activity: 2884
Merit: 794
I am terrible at Fantasy Football!!!
Do you think as the injection of institutional money increase, that we will see more irrational price movement that are synchronized with global market movements?

Will Bitcoin still be a Safe haven when institutional money takes over the majority of the ownership of bitcoins and these people start to manipulate it in the same way that they are manipulating other markets?
Would institutional investors ever be able to take over the Bitcoin market? I know that they may have a lot of money but I still doubt that they will be able to take over the whole market to the extent buying up everything. The market has so many investors, and I believe that the price will keep on increasing, so it wouldn’t be like in 2010 when someone has lots of money can buy up almost half of the market, nah things have changed this time and as time goes on it will keep on changing and the value will increasing as so many investors comes in. so whales are never getting a chance at all to do such a thing.
It is not on their best interests to do something like this, after all if they bought all the bitcoin around the world and bitcoin did not circulate as no one was using it as money then the whole reason for bitcoin to exist will be denied and then it would become useless, not that the scenario that you are putting forward will ever happen, after all the more the demand of something increases the higher its price, so it does  not mater how much money institutional investors may have, their dollars would buy less and less bitcoin if they tried to buy all the bitcoin that is in circulation.
hero member
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Vave.com - Crypto Casino

Will Bitcoin still be a Safe haven when institutional money takes over the majority of the ownership of bitcoins and these people start to manipulate it in the same way that they are manipulating other markets?

Let's discuss.

This is serious question and a food for thought but the point is if any body can stop it? This is possible to happen but who could tell the degree of manipulation that can go on if it will be greater than the current manipulation or lesser but I know it that institutional hodlers are expects in business and all out for profit that means we could also see higher price because demand will increase when products not available.
legendary
Activity: 2996
Merit: 1132
Leading Crypto Sports Betting & Casino Platform
Do you think as the injection of institutional money increase, that we will see more irrational price movement that are synchronized with global market movements?

Will Bitcoin still be a Safe haven when institutional money takes over the majority of the ownership of bitcoins and these people start to manipulate it in the same way that they are manipulating other markets?
Would institutional investors ever be able to take over the Bitcoin market? I know that they may have a lot of money but I still doubt that they will be able to take over the whole market to the extent buying up everything. The market has so many investors, and I believe that the price will keep on increasing, so it wouldn’t be like in 2010 when someone has lots of money can buy up almost half of the market, nah things have changed this time and as time goes on it will keep on changing and the value will increasing as so many investors comes in. so whales are never getting a chance at all to do such a thing.
We can't say that they are completely combined together forever. Even though we can't say they are irrelevant like you said, we also can't say that they are not independent ab it neither, and I believe that we are in a situation where they would be affected by each other but that is about it.

Prices are of course related to each other, when one does one thing the other follows and so forth but price is not the only thing in the world that we care about. I care about the decentralization, as long as the coin I buy is decentralized (funny enough, I own bnb.. go figure) then I am fine, and fiat does not have that. This is why we could say they are a bit different as well.
legendary
Activity: 2086
Merit: 1058
Do you think as the injection of institutional money increase, that we will see more irrational price movement that are synchronized with global market movements?

Will Bitcoin still be a Safe haven when institutional money takes over the majority of the ownership of bitcoins and these people start to manipulate it in the same way that they are manipulating other markets?
Would institutional investors ever be able to take over the Bitcoin market? I know that they may have a lot of money but I still doubt that they will be able to take over the whole market to the extent buying up everything. The market has so many investors, and I believe that the price will keep on increasing, so it wouldn’t be like in 2010 when someone has lots of money can buy up almost half of the market, nah things have changed this time and as time goes on it will keep on changing and the value will increasing as so many investors comes in. so whales are never getting a chance at all to do such a thing.
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