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Topic: Institutional Bitcoin Trading (Read 260 times)

member
Activity: 80
Merit: 24
December 06, 2019, 08:09:36 AM
#24
for me it is not important whether the bear or bull .... why? there will always be times where there will be bulls and bear markets no matter who will enter and have an impact even though no doubt good news often brings bull prices as well as the other way around so in my personal opinion the more people know things about bitcoin the better even though the market is dull with some negative news
legendary
Activity: 2912
Merit: 6403
Blackjack.fun
December 04, 2019, 09:44:30 AM
#23
A lot of institutional players are getting into the Bitcoin market.
What is your source about that? Where did you hear this?

There is no source and there will never be a trusted one posted here because there aren't!
I've been hearing for years, institutional money is coming into bitcoin, institutional players are investing and guess what, nothing and we can see in the markets, not even breadcrumbs compared to the traditional markets.

Besides, and this is the worse part (not the worst) a lot of the guys cheering for "institutional" bla bla are not even knowing what the term means.
But the worst part, in my opinion, is the constant cheering for Wallstreet and government and banks to invest in crypto! Why do we need them, to hog millions of coins and dump them at the first sign of an economic crisis, destroying a safe refuge from the turmoil they create themselves? To allow GS to manipulate the price? Where does this newfound love for them comes from? Screw them!

sr. member
Activity: 1498
Merit: 374
Leading Crypto Sports Betting & Casino Platform
December 03, 2019, 06:23:47 AM
#22
Institutional funds getting into the market is only a good thing for the long term as more funds pouring into the market equals growth. Especially with the halvening coming the Bitcoin will become even more scarce & people will be eager to get at least a decent amount of it as they are now as well. I expect a big FOMO to appear in the market once Bitcoin gets again above $10k and then another wave when going for a new ATH
Institutional funds being injected to the market will result to a huge market growth especially now that mass adoption is taking over simultaneously with the bitcoin halvening. The said halvening has not been proven to be increase the bitcoin market price but somehow the charts says that halvening corelates with bitcoin price as it affects the demand for the bitcoin. FOMOs will be everywhere causing the price to increase drastically.
hero member
Activity: 1582
Merit: 670
December 03, 2019, 05:21:40 AM
#21
A lot of institutional players are getting into the Bitcoin market.


What is your source about that? Where did you hear this?


Curious do you think this is Bullish or Bearish for the industry?

Won't they drive the price down on the dev. market due to its all paper contracts and not bitcoin settled?

What do you think?

Big players wants to make money under all circumstances. So, if they will get in to the market, then everyone can make money with them. But there is a key point. You should know where will you sell.
sr. member
Activity: 1008
Merit: 355
December 03, 2019, 05:16:27 AM
#20
It really could go either way, and it could probably drive the price down. But remember, it's a free market in the first place, so the industry is moving in a way that's really not surprising(concerning institutions). They're going to get in on bitcoin and cryptocurrencies if they want, and there's nothing we can do about it.

Exactly also my POV on the coming of institutional money to Bitcoin and cryptocurrency. There is nothing we can do about it and nobody can really stop them from doing do, so we might as well welcome them with open arms and willing hearts. Actually, there had been many who predicted that the coming in of institutional can be good for Bitcoin in the long-term basis and can be helping stabilize the price movements of Bitcoin thereby lessening the volatility of the said asset. However, we could not really be sure of what can be so maybe we should be waiting for some years to see how this inflow affected Bitcoin in general.
mk4
legendary
Activity: 2870
Merit: 3873
Paldo.io 🤖
December 03, 2019, 04:27:35 AM
#19
It really could go either way, and it could probably drive the price down. But remember, it's a free market in the first place, so the industry is moving in a way that's really not surprising(concerning institutions). They're going to get in on bitcoin and cryptocurrencies if they want, and there's nothing we can do about it.

This is the beauty of the crypto market that it has welcomed everyone coming into its domain. Institutional players ( like banks, insurance companies, hedge funds, mutual funds) will bring more capital to the crypto market which will surely a big plus.

Big plus in terms of liquidity and in terms of public perception as it would give bitcoin more legitimacy to the masses, but not necessarily price. Always remember that the institutional entities can freely short bitcoin as much as they want. The common perception that institutions going in on bitcoin will push up the price is heavily heavily flawed.
hero member
Activity: 1498
Merit: 785
December 03, 2019, 02:13:11 AM
#18
Institutions have a lot that can be used for bitcoin trading easily. But only a few institutions enter bitcoin. Maybe it can affect the price of bitcoin. Usually they will publish news about those who enter bitcoin to support the price of bitcoin. The bitcoin market is a free market that can be entered by anyone including institutions.
sr. member
Activity: 1330
Merit: 326
December 02, 2019, 08:17:03 PM
#17
A lot of institutional players are getting into the Bitcoin market.


Can you state an example who is that Institutional players you are referring to?

Quote
Curious do you think this is Bullish or Bearish for the industry?

It may somehow affect the market a little. We can't really say about that but I always believe that good or bad news can really affect bitcoin's price.

Quote
Won't they drive the price down on the dev. market due to its all paper contracts and not bitcoin settled?

What do you think?
Depends. If that institutional player you are saying is a whale who hold up to thousands of bitcoin then they can drive the market and they can even go manipulate the price. But who knows? Their involvement can always be nothing but always depends on the amount of btc they are holding.
legendary
Activity: 1652
Merit: 1483
December 02, 2019, 06:53:16 PM
#16
A lot of institutional players are getting into the Bitcoin market.

Curious do you think this is Bullish or Bearish for the industry?

Won't they drive the price down on the dev. market due to its all paper contracts and not bitcoin settled?

What do you think?

manipulation of the supply via rehypothecation and commingling is a very legitimate concern. because of these accepted wall street practices, it's estimated that collateral in institutional markets is re-used 1.8 times on average. this means the market supply is effectively being inflated by 1.8x:

Quote
The IMF ’s Manmohan Singh is the foremost expert on collateral chains. He has combed through the footnotes of banks’ financial statements around the world, attempting to quantify the risk Giancarlo discussed, and he estimates collateral is re-used 1.8 times (as of year-end 2015). This means only one of the 2.8 people who think they own a U.S. Treasury bond, for example, actually does own it—namely, the original owner of the bond and the 1.8 parties to which the bond was re-pledged.

in other words, wall street counterparty bookkeeping methods could allow for nearly twice the real bitcoin supply to be injected into institutional markets (like bakkt) as paper instruments. more supply = lower price.
legendary
Activity: 3122
Merit: 1398
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December 02, 2019, 05:47:43 PM
#15
A lot of institutional players are getting into the Bitcoin market.

Curious do you think this is Bullish or Bearish for the industry?

Won't they drive the price down on the dev. market due to its all paper contracts and not bitcoin settled?

What do you think?



Either way, everything has a chance to happen.

Let them play, let them involved, let them take part. The fact that they consider getting into the Bitcoin market means a big recognition, at least*. I can't imagine how will they create a big impact easily just because they involved actively today in the crypto market. I mean, I see no big difference at all, it's just that more players come to test the waters in crypto.

Let's see how their involvement can affect the crypto market as a whole.
hero member
Activity: 3038
Merit: 634
December 02, 2019, 05:39:22 PM
#14
That's what the crowd or majority says but we don't know what will be the actual effect of it until we see them finally ride bitcoin. It's been said that institutional money will make bitcoin on bullish and that's what we believe.

And for the result, it's not depending on those words but it will depend actually to the volume and demand that they will bring. So let's say that the prices go up and the demand increase, it could be them that's driving it up.
full member
Activity: 756
Merit: 105
December 02, 2019, 05:29:57 PM
#13
let them, the important thing is not to influence and damage what bitcoin has achieved so far. !!
legendary
Activity: 1904
Merit: 1074
December 02, 2019, 03:38:11 PM
#12
The institutional investors participation in asset settled financial instruments is very small through Bakkt. There is not enough volume to have any

significant influence on the price. I think professional traders are just putting a very small portion of their total portfolio into Bitcoin as a test and

also to be trendy. The resent downward spiral in the price are not gaining Bitcoin any favor with these traders, because they cannot show a profit,

if the price is constantly going down on average.  Roll Eyes
hero member
Activity: 1008
Merit: 531
December 02, 2019, 03:11:49 PM
#11
I think the opposite, early or so this year we saw a lot of institutional investors try and enter the market, and they basically pushed Bitcoin dominance pretty high and raised the price of it again.

I doubt institutions are going to have a huge effect on bitcoin, likely just small movements that get covered by the regular market, and they still aren't the biggest whales.

There has actually been a lot of people who have been trying to trade OTC without effecting market prices, as well. Not sure if businesses can do this.
legendary
Activity: 3234
Merit: 1214
Vave.com - Crypto Casino
December 02, 2019, 02:44:16 PM
#10
Institutional players participation were high over the years, but this doesn't take the market either way. It causes immediate pump and the same gets into the regular growth within a short. This is all because of its manipulative nature. Institutional investors get into the market when the market itself turns bullish.

Trading volume increases when more people get into it. Institutional trading will be done with huge funds which will boost the market at least for a short. Bakkt was predicted to make a big change, but nothing big has been experienced out of the same.
hero member
Activity: 2660
Merit: 551
December 02, 2019, 02:31:50 PM
#9
A lot of institutional players are getting into the Bitcoin market.

Curious do you think this is Bullish or Bearish for the industry?

Won't they drive the price down on the dev. market due to its all paper contracts and not bitcoin settled?

What do you think?



Probably the question is when did this institutional players enter the market? I have a hunch that they have been in the market prior the 2017's bull run. Much earlier I guess, specially when they see that there's a lot of potential in this market in 2015-2016.

CME and CBOE entered in December 2017, Bakkt just this year, but as far as predicting that it could be bearish or bullish? Still based on the sentiments of crypto investors I guess. Right now, although Bakkt have been putting record numbers of trade, still the price is not affected significantly. So for me, investors are in a waiting game here, if they see opportunity they just grab it no matter if we're in the bullish or bearish trend, in my opinion.
legendary
Activity: 3500
Merit: 6981
Top Crypto Casino
December 02, 2019, 01:39:18 PM
#8
I've wondered this myself since I heard about the futures markets being created and especially since Bakkt launched. 

What I really wonder is how the options/futures trading actually can affect the reported price of bitcoin, and I'd love it if someone with a lot more knowledge than the average bitcointalker (and way more than myself) would address it.  When I look at what the price of bitcoin is, I usually check preev.com and have done so for years now.  But all of those futures are traded on paper, and I don't think most of them are settled for "physical bitcoin".  If they were, you'd think there would be a spike in buying in order to cover the settlement, but I just don't think that's the case.

Even if it were, there's the possibility that the bitcoin that's purchased is done off-exchange.  So I can't say whether this institutional money that's involved in Bakkt or the CME is having any sort of bullish or bearish effect.  I'd like to see some evidence or hear someone's opinion who really knows the markets.

Also, right after Bakkt launched bitcoin dropped quite a bit and hasn't fully recovered yet.  That could be coincidence, but I don't know.
sr. member
Activity: 1274
Merit: 265
December 02, 2019, 01:27:21 PM
#7
It really could go either way, and it could probably drive the price down. But remember, it's a free market in the first place, so the industry is moving in a way that's really not surprising(concerning institutions). They're going to get in on bitcoin and cryptocurrencies if they want, and there's nothing we can do about it.

This is the beauty of the crypto market that it has welcomed everyone coming into its domain. Institutional players ( like banks, insurance companies, hedge funds, mutual funds) will bring more capital to the crypto market which will surely a big plus.
sr. member
Activity: 868
Merit: 252
December 02, 2019, 12:48:04 PM
#6
I see that they have been facilitated by CME and BAKKT in futures trading, and not the spot market. If it goes well, then it should be a bullish sentiment because it does not only focus on the short term.

waves of funds from institutions are able to make the price of bitcoin very different from now, and certainly can reduce the level of manipulation in such a way from the regular market.
jr. member
Activity: 236
Merit: 1
December 02, 2019, 10:20:44 AM
#5
I think it's good for Bitcoin if institutional investors are investing in BTC. Why? Because it helps bitcoin adoption at a larger scale. I know for short it may affect bitcoin prices in negative direction but in the long-term Bitcoin, the next possible Target is 40k.
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