Bitcoins accumulated by institutional investors

Wintersoldier

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Quote from: qiwoman2 on October 22, 2019, 03:18:28 AM

It looks like it can be a mix of both institutional investors, big lone whales and also exchanges. If you have noticed there are a plethora of new cryptocurrency exchanges opening up every month, so naturally, they will be housing some good number of Bitcoin in their hot and cold wallets for their customers. So although I do believe that institutional investment into the Bitcoin Asset Class has been going up steadily, I also think that OTC DESKS and Exchanges have also been cropping up in numbers as well. The big birds are for sure eating up all the little Bitcoin worms now. I want to see if more and more smaller holders will be popping up, as we want more decentralization to happen and this can only happen if we have many Bitcoin holders.

That's for sure, we are seeing more and more new exchanges and they are becoming quite effective in promoting Bitcoin to the global community. I think that the price of Bitcoin will grow steadily every year now.

It's quite un likely to spot the big maeket change due to investors only, though it is in fact true that there are many whales in the crypto space. But I see, another contributor to this phenonmenon are those bitcoin casinos and sports betting platforms that needs more fund to operate. In addition l, more and more mobile wallets and exhnages are now opened for massive crypto adoption in the latter future.

qiwoman2

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It looks like it can be a mix of both institutional investors, big lone whales and also exchanges. If you have noticed there are a plethora of new cryptocurrency exchanges opening up every month, so naturally, they will be housing some good number of Bitcoin in their hot and cold wallets for their customers. So although I do believe that institutional investment into the Bitcoin Asset Class has been going up steadily, I also think that OTC DESKS and Exchanges have also been cropping up in numbers as well. The big birds are for sure eating up all the little Bitcoin worms now. I want to see if more and more smaller holders will be popping up, as we want more decentralization to happen and this can only happen if we have many Bitcoin holders.

coinfinger

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Quote from: ChrisPop on October 12, 2019, 11:15:05 AM

I have just seen this tweet from glassnode on Twitter which shows that the number of addresses that hold over 1000 BTC has dramatically increased in the last year and a half. Pretty much since we have dropped from the $6000 level the BTC has started to be accumulated. Are they institutions? What's your take on that? Also why wouldn't they split their holdings in multiple addresses instead of keeping them all in one?

Looking at the graph we are approaching 2100 addresses with > 1000 BTC, that translates to at least 2,100,000 BTC.

Not every address that you see actually belongs to institutional investors because we have so many people in cryptocurrency that are very rich individually and many people keep money in bitcoin for different purposes, some keeps it for Investment, some for transactions and some even keeps it in their wallet against the eyes of the government.

Institutional investors that hold bitcoin even have more than that 1000 btc in their wallet, and talking of splitting into different address, I see no reason why they should do that when they don’t have hidden agenda, and they might have even done that by splitting it the way you see. What if an institutional investor has about 10,000 btc altogether and the splitting is what you have already seen as 1000 each?

Dabs

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It's trivial to generate a few hundred to thousand addresses, then use those to split up what would otherwise be a very large quantity of coins in a single address. They could even use one of those wallets or hardware wallets with HD to create a master extended public key and have a thousand addresses of cold storage.

jostorres

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Quote from: Upgate on October 18, 2019, 01:54:30 PM

It's very easy to comprehend, so simple the price of bitcoin reduced and this made is easier for investors to getore and more, the bear market was not all that completely a disaster it just a time to get extra bitcoin

The time that the bears spend in the market may be discouraging, but to a degree, it is actually a blessing because it will make us be able to buy the coin at cheap price and then sell at high price anytime that the market is fully bullish.

This is one thing that makes institutional investors to always be wiser than us, anytime that they see some of those opportunities to buy bitcoin at a cheap price, they go for it and accumulate as much as they can while we are the ones that use to panic sell, but if we are wise, we should already understand that rather than panicking, we should try to always take advantage of the deep price to always had more coin to our pocket in preparation to when bitcoin will fully start rising in the future when the bull run starts.

Murat

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If this trend is gonna be an institutional issue then it would be a good thing from my perspective, this type of big bulk holding is not good for this platform because of Bitcoin is yet to be a mature platform, so when you see that a big syndicate then you might think that there is a big target behind this, Suppose when the price of Bitcoin will get a high line then they would probably sell of their whole stocks and then instantly the price will be hampered again, So I think everwhere is syndicate is not brought any positive outcome. Institutional or non-institutional, that's not my concern, the reserve is the main concern for me because of its a currency, not gold.

BChydro

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Quote from: ChrisPop on October 12, 2019, 11:15:05 AM

I have just seen this tweet from glassnode on Twitter which shows that the number of addresses that hold over 1000 BTC has dramatically increased in the last year and a half. Pretty much since we have dropped from the $6000 level the BTC has started to be accumulated. Are they institutions? What's your take on that?

It is not surprising that people are accumulating bitcoin because we have another halving next year and everyone knows the history of bitcoin as it is really short and when ever there is a halving we tend to see a rally and everyone is expecting that this time too, there might be institutional investors and there may be millionaires or billionaires taking a risk to make profit.

Quote from: ChrisPop on October 12, 2019, 11:15:05 AM

why wouldn't they split their holdings in multiple addresses instead of keeping them all in one?

Splitting the coins in different wallets will be a wise idea to avoid any risk but the fact remains that if your system is compromised then you are doomed and if you know what you are doing then it does not matter.

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at this time I am sure investors who still keep a lot of bitcoin even more than 1000 Bitcoin are still very much and this also does not know whether the owner is still alive or not because usually investors who have that much bitcoin can no longer access their wallet, if can still access his wallet so he can definitely get a lot of benefits.

fiulpro

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I think this is more of a thing Where it depends who do you call an institution ..
It may just be a person with a lot of money considering how many billionaires are there.. we cannot just say that it's an institution also at the same time when we think the black market have a lot of people with unlimited cash they would also be here so I think it more of a sum , not just institutions , because they fear the government ... They are tied by it .. they will try and stay away from things that would be troublesome for them .

blckhawk

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It's possible that some institutions already hold bitcoin in them, maybe they're just hiding it and not broadcasting it to the public. I don't think these institutions would just let bitcoin exist and does not care to hold at least some. This also signifies that bitcoin is still early and that there is demand that would keep bitcoin alive in the next years or more. It's not just another get-rich-quick scheme, I believe that it would become mainstream soon, the blockchain and cryptocurrencies have promising advantages and characteristics that'll attract more investors.

n0ne

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Long back itself this is being practiced by the centralized Institutional investors who are against cryptocurrency. They give an outlook of opposing the cryptocurrencies and hold it indirectly. This means they're in need of bitcoin, because no asset is volatile to this extent.

When large volume fund gets accumulated in the form of bitcoin, the change in price will get a big return. This will help them overcome losses in a much easier way if something worse has taken place in their business. Particularly insurance firms are much into accumulation of bitcoin.

Kyraishi

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I think there's a possibility here where it's not actually 2000 or so different entities/whales, but some of the addresses could just be owned by one really rich person who spreads out his funds... Just a theory though.

No doubt there been more institutional investments in the market in recent years, a lot of trust funds and venture capital funds have started looking at this market and there was a study that showcased that more traditional investors where starting to flow into our markets.

The more companies and influential people hold and showcase their support for crypto, the better.

BitHodler

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Quote from: GreatArkansas on October 18, 2019, 06:05:30 PM

As time goes by, it is really expected that we can see an enourmous increase on different Bitcoin addresses that has Bitcoin balance, especially what the OP said ,the more than 1,000 BTC balance on different wallet addreses. Price + adoption, is the formula for that, that's why.

I don't really add too much value to wallet balances because whales more than ever tend to reduce the risk of holding a lot of coins in one address by distributing their coins amongst a multitude of wallets.

I'm a small fish but I have distributed my coins amongst multiple wallets too, and with me there are a lot of other people who did so. This mass movement of coins to the clueless people might appear to be mass adoption.

No doubt there are new investors entering the space, but news outlets always like to exaggerate every metric to make it appear that there is a lot going on in crypto land, while the reality isn't all that exciting at all.

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Quote from: ChrisPop on October 12, 2019, 11:15:05 AM

I have just seen this tweet from glassnode on Twitter which shows that the number of addresses that hold over 1000 BTC has dramatically increased in the last year and a half. Pretty much since we have dropped from the $6000 level the BTC has started to be accumulated. Are they institutions? What's your take on that? Also why wouldn't they split their holdings in multiple addresses instead of keeping them all in one?

Looking at the graph we are approaching 2100 addresses with > 1000 BTC, that translates to at least 2,100,000 BTC.

I think that it is indeed being accumulated by institutionalized investors like businesses that involves bitcoin. Actually this isn't sound good for it does't shows adoption for these btcs only belongs to few individuals and not distributed to different addresses. Likewise, we don't have enough power to control those whales in the market who are indeed manipulating it. Maybe they are the ones who was there from the beggining of cryptos.

GreatArkansas

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Probably an instition and maybe some of them are also businesses that are using Bitcoins. As time goes by, it is really expected that we can see an enourmous increase on different Bitcoin addresses that has Bitcoin balance, especially what the OP said ,the more than 1,000 BTC balance on different wallet addreses. Price + adoption, is the formula for that, that's why.

Upgate

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It's very easy to comprehend, so simple the price of bitcoin reduced and this made is easier for investors to getore and more, the bear market was not all that completely a disaster it just a time to get extra bitcoin

superman25

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In my opinion this is because more entrepreneurs and investors are protecting their money in Bitcoin and they have purchasing power, somehow they have taken advantage of low prices and the accumulation has been great, the most important thing is that the benefits of technology Blockchain and cryptocurrencies achieve a practical and massive use.

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Quote from: Gotumoot on October 18, 2019, 10:50:57 AM

I think this is a way of concealing wealth, It is very possible that there is only one owner or if it is owned by a group of hackers or scamers,
There are many reasons but I can only say that it is closer to the answer or the truth is that it is a way of hiding so that no one knows how rich its owners are. Or it is a security that the Bitcoin held by owner does not steal everything immediately.

One of the feature of bitcoin is being anonymous so as long as your wallet is not associated with any business who deals with KYC procedure, your wallet is safe to be known in public., It seems that there's a chance of institutional investors who learned crypto as a good store assets to invest for longer term of holdings. Or possible that bag holders who splitting his assets to multiple wallets. Whatever it is, we don't have any chance to know since anonymity is there to prevent us knowing the real owners of those wallets

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Quote from: ChrisPop on October 12, 2019, 11:15:05 AM

I have just seen this tweet from glassnode on Twitter which shows that the number of addresses that hold over 1000 BTC has dramatically increased in the last year and a half. Pretty much since we have dropped from the $6000 level the BTC has started to be accumulated. Are they institutions? What's your take on that? Also why wouldn't they split their holdings in multiple addresses instead of keeping them all in one?

Looking at the graph we are approaching 2100 addresses with > 1000 BTC, that translates to at least 2,100,000 BTC.

Probably yes probably not, there is no data or news that can tell us that those coins really owned by institutional investors may be some whales decided to create additional wallets and distribute to these additional wallets unless we can trace on who owns the majority of these wallets that now holds over 1000 Bitcoin, and I don't see any bad reason why people will split their shares so many people are already doing this, and it's like not putting all your eggs in one basket.

kryptqnick

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I agree with o_e_l_e_o about the chart. It does look more like diversification than accumulation. In the case of accumulation we'd probably see the decrease in the number of less wealthy addresses and a small increase in the number of rich addresses. Adding quite a lot of rich addresses so fast indeed suggests that it's an operation of diversification performed by one or perhaps up to 3 companies (or 3 structural components on the company) methodically at specific dates. This should be indicated by a tiny decrease in the number of super-rich addresses during those days, but I don't know how to check such a thing.

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