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Topic: Growing number of institutionnal investors - page 2. (Read 1123 times)

member
Activity: 889
Merit: 10
since 2017, the cryptocurrency market has changed a lot and one of the most important achievements in the cryptocurrency market is futures trading. It seems to me that it is the availability of futures on the cryptocurrency market that makes it possible to organize arbitrage trading to the right extent. As for institutional investors, the infrastructure is gradually being created in the cryptocurrency market, for example, the Huobi Group has launched an over-the-counter platform for large players. At the same time, BitGo created a clearing system of a similar level. I believe that it was the current transfer that was marked by a very strong relationship between the stock and cryptocurrency markets.
During the pandemic cryptocurrency has become a view of people as a good asset storage for new people. In my view, the increase in investors is happening. I am sure there will be many new projects in the community's view because this game is only a term and they know the risk will be borne by themselves. is a good and advanced future for cryptocurrency in this pandemic. Popularity will develop fast
sr. member
Activity: 1050
Merit: 377
I’m expecting better changes in the price of bitcoin. I just don’t know why the price has been finding it difficult to get pass the current rate at which it is now ($9,400). It’s been quite long that it’s been at this rate. I have been seeing the media saying that there institutional investors getting interested and investing in bitcoin. Seriously, there should be better changes in the price by now, it should start going up more than this level we have been at. Through out last month of June this was what I kept looking out for and still never happened and we are in a new month, hoping it’s going to be different.

Institutional investors are known for creating FOMO in crypto market if they are really growing in big number in crypto space then we can expect a strong bull rally incoming weeks. It is going to be midway of July but we are still unable to pass the biggest psychological resistance level of $10,000.

You won’t fool anyone with this tale. 2 years ago everyone was waiting for institutional investors to come to the market and transfer the game. Everyone was waiting for crypto spring. And what is the result?
We got BAKKT and other tools for institutional, but nothing happened. Everything remained exactly as it was. A lot of time has passed already, where did you get the idea that now institutional people will change something. I doubt it very much. To do this, they need to be one team, or otherwise they will have each other in a speculative game in the market.
full member
Activity: 1316
Merit: 108
since 2017, the cryptocurrency market has changed a lot and one of the most important achievements in the cryptocurrency market is futures trading. It seems to me that it is the availability of futures on the cryptocurrency market that makes it possible to organize arbitrage trading to the right extent. As for institutional investors, the infrastructure is gradually being created in the cryptocurrency market, for example, the Huobi Group has launched an over-the-counter platform for large players. At the same time, BitGo created a clearing system of a similar level. I believe that it was the current transfer that was marked by a very strong relationship between the stock and cryptocurrency markets.
newbie
Activity: 20
Merit: 0
The result of one vote may not be accurate, but the results are shocking. bitcoin have gained wide popularity soon, despite the lack of a lot of information, regulators or investment directions.
Institutional funds that accept few digital currencies and investments in them are speculative or exchange trades.
I have done a questionnaire on Facebook, a small percentage have recognized digital currencies and a small part of them have known or invested in them.
adoption need more investors and more investments
hero member
Activity: 2898
Merit: 639
I’m expecting better changes in the price of bitcoin. I just don’t know why the price has been finding it difficult to get pass the current rate at which it is now ($9,400). It’s been quite long that it’s been at this rate. I have been seeing the media saying that there institutional investors getting interested and investing in bitcoin. Seriously, there should be better changes in the price by now, it should start going up more than this level we have been at. Through out last month of June this was what I kept looking out for and still never happened and we are in a new month, hoping it’s going to be different.

Institutional investors are known for creating FOMO in crypto market if they are really growing in big number in crypto space then we can expect a strong bull rally incoming weeks. It is going to be midway of July but we are still unable to pass the biggest psychological resistance level of $10,000.
copper member
Activity: 2940
Merit: 4101
Top Crypto Casino

What is stopping them?
- market manipulation
- lack of knowledge
- volatility


We can add to these main reasons to prevent people from investing in cryptocurrencies in general also their fear of theft and hacking, due to the many incidents that have occurred in the world of Crypto and especially the abuse and closure of large exchanges such as Binance and also Cryptopia and IDAX and others.
Also, the lack of regulations for the cryptocurrencies market, this makes it difficult for major international companies to adopt the cryptocurrencies market and this also has a negative impact.

But here the topic is about institutional investors not the average Joe on his sofa. Since we aren't supposed to keep our coins on an exchange platform, who cares if Binance, Bitstamp, or any other is hacked, there are so many alternatives.

A market without regulation was one of the strong points for cryptocurrencies but since people started to accept the KYC bullshit, they participated to kill this point. Your stuff about INTL companies adopting cryptos is irrelevant, as I said we're considering institutional investors
legendary
Activity: 1820
Merit: 1950
Fully Regulated Crypto Casino

What is stopping them?
- market manipulation
- lack of knowledge
- volatility


We can add to these main reasons to prevent people from investing in cryptocurrencies in general also their fear of theft and hacking, due to the many incidents that have occurred in the world of Crypto and especially the abuse and closure of large exchanges such as Binance and also Cryptopia and IDAX and others.
Also, the lack of regulations for the cryptocurrencies market, this makes it difficult for major international companies to adopt the cryptocurrencies market and this also has a negative impact.
sr. member
Activity: 1050
Merit: 377
I believe that volatility is the number one reason why many institutional investors do not invest in the crypto market. The risks are too high. Too many unpredictable factors.
The history of the crypto market shows us that even in the most stable times, the cryptocurrency can behave extremely unpredictably, ruining all plans and playing against the majority opinion.
This means that someone is able to manipulate the market and this is too much risk.
hero member
Activity: 2520
Merit: 624
Growing number of institutionnal investors

The only logical next step to happen is that institutional investors get bigger share of Bitcoin. That will be the fuel for next bull market.

The increase is good for the market of bitcoin. Institution buying cryptocurrency means we are going to see more interest and individual investors are going to feel more secured because bigger investors are more likely to bring a kind of direction and avoid scammers.
newbie
Activity: 17
Merit: 0
investors will start getting rid of their investments when the failures happen and start losing or selling the investments.
They hide from the economy and the volatility, so they diversify and invest in many areas, but when life returns to normal they will return again to safe investments.
Lack of knowledge of the things that will be treated by time
Volatility requires a lot of money to stabilize prices.
legendary
Activity: 2394
Merit: 1049
Smart is not enough, there must be skills
Yes, this growing investors can be seen all over the world and they are taking risk in joining in this Market because they believe that investing and trading in Bitcoin will add more wealth for them. Just like what I believe in 😊
This is a good thing that more and more people or investors we have in the crypto the demand will keep rising and leading to the rise and use of bitcoin in the globe will continue to rise. Also we need to thing one thing in mind that some of this intuitional investors may be for temporary phase as they sees the opportunity now in the bitcoin they enter and once they see the opportunity in other asset or somewhere else they will exit form here and invest elsewhere.
Of course, more and more requests will move the price of bitcoin on the exchange will experience a surge, but investors are also thinking about the risks of how to invest with bitcoin now have begun to consider because it is difficult to predict whether investing in bitcoin will experience profits or indeed vice versa, because prices do not can be sure to be stable during its course there must be a more severe crash before because of whale.
Therefore some companies still consider investing in bitcoin with such a reason.
member
Activity: 112
Merit: 17
The more use it, the better. And if the big players use it, it just shows that they have a certain trust in it. Fidelity and Vanguard already commited and Goldman is more like doing it beneath the surface - https://www.forbes.com/sites/youngjoseph/2020/06/06/goldman-sachs-tells-clients-bitcoin-isnt-good-but-it-seems-to-secretly-like-it

The trust slowly moves from fiats to cryptos and that just can be a good thing

full member
Activity: 812
Merit: 142
Yes, this growing investors can be seen all over the world and they are taking risk in joining in this Market because they believe that investing and trading in Bitcoin will add more wealth for them. Just like what I believe in 😊

This is a good thing that more and more people or investors we have in the crypto the demand will keep rising and leading to the rise and use of bitcoin in the globe will continue to rise. Also we need to thing one thing in mind that some of this intuitional investors may be for temporary phase as they sees the opportunity now in the bitcoin they enter and once they see the opportunity in other asset or somewhere else they will exit form here and invest elsewhere.
hero member
Activity: 1694
Merit: 516
~snip~

Well, that's the same as the 2/3 of us actually using cryptocurrencies, they're not here for the tech or the development or whatever. They're also here only for speculating and take their profits.
What's the difference in terms of motivation? When it's institutional investors it's a problem but when it's random individual it's not anymore a problem.

To some degree, institutional investors are problem to the market when compared to random individual buying his first bitcoin. When an individual wants to invest in cryptocurrencies, he will place bid at current market price (maybe little less or more) which will contribute organically to the market growth. But on the other side, imagine if someone wrote 5 minutes call options worth $10M and then intentionally bought $20M worth of Bitcoin in an open market so that price drop by 1-2% in next 5 minutes. Everyone who bought call option won't exercise the option because it will lead to loss. Premium paid by the buyers on Option of $10M will become profits of the writer. This is how big players (institutional investors) can easily manipulate the organic growth of unregulated markets like that of Bitcoin.

Not sure if I really understand this, but why would the prices drop 1-2% if someone buys $20M worth of bitcoins? Shouldn't the price go up since a lot of sell orders will be filled instantly in the exchange? Sorry if I am missing something here but having institutional investors invest heavily into crypto currencies should force prices upwards, or not? Also, why would you want to exercise your options? Just hold them until prices go up even further.
legendary
Activity: 2898
Merit: 1253
So anyway, I applied as a merit source :)
Yeah, but how much are these information about institutional investors actually true?
Do we have some concrete figures or is this just an impression?
We can assume that their number is high because whenever we talk about whales are not talking about individual "retail" investors but hedge funds and capital funds. So these can be considered to be a part of the institutions putting their money or out of bitcoin. Proper numbers are to be taken with a grain of salt, how much of it is true is questionable and often politically influenced but they are there, no doubt about it.

Quote
The question is how many of them is making significant investments and what sums are we talking about. I have a feeling that we are talking about hypotetic investments and projected effects, not real ones.
Now if they are whales then the investment amount is significant. JP Morgan made Bitcoin purchases and I am sure the rest of the banking sector did too. So it is not something to push under the carpet, they will become significant more with time. Roll Eyes
jr. member
Activity: 210
Merit: 2
Yes, this growing investors can be seen all over the world and they are taking risk in joining in this Market because they believe that investing and trading in Bitcoin will add more wealth for them. Just like what I believe in 😊
legendary
Activity: 3248
Merit: 1179
"Growing number of institutional investors"

This reminded me on discussions from years ago. Before 3 and more years. It was a discussion about how bitcoin got where it was in that moment with help of people, ordinary people and small businesses, and that was a first wave with a peak in 2017! Next wave will be triggered by institutional investors and big and huge companies and corporations, and that wave can be stronger than all waves before.
Now this is just a discussion we had here, and anyone can agree or disagree with this point of view, it's not matter, I saw some logic in this?
legendary
Activity: 1806
Merit: 1521
And should this be seen as a good signal for cryptocurrencies? I doubt that. When we say institutional money is flowing into crypto domain, we first have to ascertain where this money is actually pouring into. After reading the article, it turns out that the institutional investors are investing in cryptocurrencies by the means of spot or derivatives trades for the sole purpose of making profits or balancing out their portfolio.

In my opinion most BTC holders are speculators, so Wall Street is just joining the ranks of existing retail investors.

Is it good? For price, probably yes, although there is also a possibility that accounting practices like commingled omnibus accounts and rehypothecation will artificially inflate the supply of BTC-pegged derivatives. That would suppress prices on physically settled BTC derivative markets, which due to arbitrage would also suppress spot prices.

If we talk about a year or two prior, such institutional money was flowing into ICOs or crypto crowdfunding.

That was just a limited number of high risk institutional investors and small hedge funds. I'm sure more conservative institutions are focused on BTC.
legendary
Activity: 1918
Merit: 1728
~snip~

Well, that's the same as the 2/3 of us actually using cryptocurrencies, they're not here for the tech or the development or whatever. They're also here only for speculating and take their profits.
What's the difference in terms of motivation? When it's institutional investors it's a problem but when it's random individual it's not anymore a problem.

To some degree, institutional investors are problem to the market when compared to random individual buying his first bitcoin. When an individual wants to invest in cryptocurrencies, he will place bid at current market price (maybe little less or more) which will contribute organically to the market growth. But on the other side, imagine if someone wrote 5 minutes call options worth $10M and then intentionally bought $20M worth of Bitcoin in an open market so that price drop by 1-2% in next 5 minutes. Everyone who bought call option won't exercise the option because it will lead to loss. Premium paid by the buyers on Option of $10M will become profits of the writer. This is how big players (institutional investors) can easily manipulate the organic growth of unregulated markets like that of Bitcoin.
legendary
Activity: 2912
Merit: 1068
WOLF.BET - Provably Fair Crypto Casino
Have read lots about the institutional investment in cryptocurrency especially in bitcoin, they even do so much to acquire most of the newly mined coins. To me they only help to create the scarcity while the price is still manipulated. It is difficult now to appreciate their investment with the current market state, it does not increase the volume trade as well and money seems not to be flowing in the space. Invariably this looks like a time buying proposal to the space, when the time is ripe the price will go up.

Yeah, but how much are these information about institutional investors actually true? Do we have some concrete figures or is this just an impression?
The question is how many of them is making significant investments and what sums are we talking about. I have a feeling that we are talking about hypotetic investments and projected effects, not real ones.
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