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Topic: Institutional Demand for Bitcoin and Crypto Resurges (Read 282 times)

full member
Activity: 854
Merit: 108
Reports are increasingly indicating that bitcoin’s recent drop of 70% from its December record highs of nearly $20,000 has spurred a renewed interest in the BTC and cryptocurrency markets from institutional investors.

Read more: https://news.bitcoin.com/institutional-demand-bitcoin-crypto-resurges/

Because the Bitcoin and the altcoins are now very much affordable to purchase to start a brand new investments so it is natural that most of the rich investors will grab this opportunity, in fact there is a latest news that a certain chinese bought 10,000 Bitcoin during the ultimate dip https://www.ccn.com/chinese-angel-investor-gathers-10000-bitcoins-during-bear-q1-2018/. So this is the simple logic of joining an investments in which to sell it high and buy it low again.
member
Activity: 350
Merit: 11
Reports are increasingly indicating that bitcoin’s recent drop of 70% from its December record highs of nearly $20,000 has spurred a renewed interest in the BTC and cryptocurrency markets from institutional investors.

Read more: https://news.bitcoin.com/institutional-demand-bitcoin-crypto-resurges/
obviously it's a huge advantage, when investors do things like that, it's their goal to earn huge profits they end up doing that, maybe if we as investors will also follow in their footsteps, just whether there will be a risk if many investors like this at a price.
legendary
Activity: 1232
Merit: 1091
Correct me if I am wrong, but aren't these the same institutional players, who helped create the FUD we experienced at the beginning of the year to drive down the price of BTC? And now there pouring in investment? That drive down was to enable them crash the price so that they could come into the market and buy a lot, so then they can control the market because they have the largest share holdings in the market.

Yes. It's all hidden agendas they are operating, but at least those who understand how this market works, can benefit from all that negativity as well. It's basically the same with how whales teaming up silently force the market to move into a certain direction. If you are able to spot the early patterns, then you potentially can benefit as much as the whales themselves in percentages. Recently we had the obvious whale selling pressure keeping the price below the $7000 level by frequently dumping the market back down. It was clear that it was actual manipulation by how the market increased when there weren't any dumps for like 24-48 hours. It was a perfect opportunity to buy yourself into this market.
sr. member
Activity: 2366
Merit: 332
Correct me if I am wrong, but aren't these the same institutional players, who helped create the FUD we experienced at the beginning of the year to drive down the price of BTC? And now there pouring in investment? That drive down was to enable them crash the price so that they could come into the market and buy a lot, so then they can control the market because they have the largest share holdings in the market.

Your guess is not far from mine.  These instructions look for means to acquire large number of bitcoin and they flood and control the market. We are then going to see more manipulation and very high volatility because all they will be after is how to influence the market for their own personal gains.
legendary
Activity: 2492
Merit: 1232
Correct me if I am wrong, but aren't these the same institutional players, who helped create the FUD we experienced at the beginning of the year to drive down the price of BTC? And now there pouring in investment? That drive down was to enable them crash the price so that they could come into the market and buy a lot, so then they can control the market because they have the largest share holdings in the market.
Probably that was gonna happen those rich people or those big politician people. They feed those broadcasters, writers, and bloggers to spread a FUD news in order to lower the price in the market and people made panic selling to sell all bitcoin holding that afraid to lose.
Since they cannot manipulate bitcoin price in the market that was mostly they gonna do, as what I have read on the article.
sr. member
Activity: 602
Merit: 265
Correct me if I am wrong, but aren't these the same institutional players, who helped create the FUD we experienced at the beginning of the year to drive down the price of BTC? And now there pouring in investment? That drive down was to enable them crash the price so that they could come into the market and buy a lot, so then they can control the market because they have the largest share holdings in the market.
hero member
Activity: 1330
Merit: 569
Reports are increasingly indicating that bitcoin’s recent drop of 70% from its December record highs of nearly $20,000 has spurred a renewed interest in the BTC and cryptocurrency markets from institutional investors.

Read more: https://news.bitcoin.com/institutional-demand-bitcoin-crypto-resurges/

There is really nothing surprising here. The issue is, for the simple reason that price rose to that highest level before is an indication that its possible that it might happen again(though it might be late) and that is where majority of people fail to get it that rather than seeing it as an opportunity to buy and make some decent amount of returns within reasonable time, they are quick to speculate, ask questions why?, skeptical as to whether its going to be possible again, then refuse to take action. This then give the institutions the window to get in at a low price and when it has risen go a certain point they exit the market for the complainers to do what they know how to do best which complaining and the circle continues.
newbie
Activity: 185
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No surprise at all if  "BTC recent drop of 70% from its December record highs of nearly $20,000".
newbie
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With a decline of up to 70% this can make or get a huge profit what if they buy it, and the institution makes the right purchasing step.
legendary
Activity: 3080
Merit: 1353
Quote
“Regulators are not banning the development of cryptocurrencies, but are trying to better regulate the market, which should help the industry mature,” Mr. Lai said. “If the regulatory stance gets clearer, large funds will be more assured and willing to commit significant capital.”

Only if the regulations are fair, of course. If it gets to a point where putting money in crypto is more trouble than it's worth, then why would anyone bother? That's the part where it gets tricky.

But yeah, I have mixed feelings about institutional investors actually entering the market. They're going to be in it for the money, not the technology, so it will only contribute to volatility as they play with their money, and may actually hurt actual adoption in the long run.

Exactly what my thoughts are. Institutional investors are in just for the money that might significantly affected the prices in a negative way. We have seen the impact in December when suddenly a surge of price pushes the price to a bubble. And after that, a lot of (newbies) investors got burned. so its a little bit tricky Plus I can also see that they can play a big role in manipulation the price. Its really exciting to here institutional investors really recognizing crypto but I still a bit of skeptic as to what they real intentions because at the end of the day, its us that are going to suffer eventually.
sr. member
Activity: 686
Merit: 264
"STAY IN THE DARK"
I am opposed to the fact that a large number of coins are concentrated in one place. This lays a mine of delayed action under the entire market. We have seen for 4 months of this year how it works. Whales can easily reduce and increase the price. I'm not against volatility but the big players can increase the price decline period and it will be bad for everyone. I would like more if 200k bitcoins bought 200k people.
That's just the nature of these markets though. Wealth will never be distributed in such an equitable manner. It is also not right to think that anyone with a lot of Bitcoin would be out there trying to manipulate the markets (think the Winklevoss twins for example).
But the reality is they can manipulate the market prices of they have large number of bitcoins in their hand and it is always happening and we call them as whales,but now that concentration getting decreaseing due to more number of new investors coming to invest so they will buy from the whales one day the whales might disappear but whey have made good amount of profits.
newbie
Activity: 139
Merit: 0
Such a sharp decline could be a great institution opportunity to buy at a bargain price by holding back some time to get a great price or a high price.
legendary
Activity: 1386
Merit: 1045
I am opposed to the fact that a large number of coins are concentrated in one place. This lays a mine of delayed action under the entire market. We have seen for 4 months of this year how it works. Whales can easily reduce and increase the price. I'm not against volatility but the big players can increase the price decline period and it will be bad for everyone. I would like more if 200k bitcoins bought 200k people.
That's just the nature of these markets though. Wealth will never be distributed in such an equitable manner. It is also not right to think that anyone with a lot of Bitcoin would be out there trying to manipulate the markets (think the Winklevoss twins for example).
member
Activity: 938
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Reports are increasingly indicating that bitcoin’s recent drop of 70% from its December record highs of nearly $20,000 has spurred a renewed interest in the BTC and cryptocurrency markets from institutional investors.

Read more: https://news.bitcoin.com/institutional-demand-bitcoin-crypto-resurges/
Everyone wants a fertile land and now the institutions have seen that in Bitcoin. The rise in Bitcoin price currently have revitalized the interest of many investors as they see the big BTC bull is about taking another leap. Looking at the statements of analyst like Olga Feldmeier, the chief executive officer at Smart Valor, it seems the investors have waited long for this moment.

Quote
Olga Feldmeier, the chief executive officer at Smart Valor, predicted that a strong break above the $8,000 USD area is having the potential to comprise “the ignition for the next bull phase, for which a lot of investors were waiting for a long time and will be happy to support now.”
full member
Activity: 504
Merit: 100
It is true that with such a large decline it will give more chances to more buckets with a chance of great results or profits.
legendary
Activity: 2968
Merit: 3684
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I'm not sure there's really a surge in demand from institutional investors. We're hearing about them all now, for sure, but read deeper and you realise that they already entered the market a while ago - last year most likely, through their hedge fund managers and associated funds. They're probably the ones who largely made Bitcoin the crazy "investment asset" that it was end of last year. They probably also shorted it all to lock in profits, causing the recent slump. And they're probably making public their "new" investments to time their dip buys nicely for more profit.

Think about it. These are guys who pay other guys to tell them what's on the horizon. They'd have heard of Bitcoin long before its 4k mark, and they're not the kind to buy now when everyone else has had their fill.
It's not as straightforward though. What you describe may be true for family offices, for example, but isn't true for institutional investors like say pension funds. They have very strict mandates on what they are allowed to invest in, and opening up a new asset class with questionable custody solutions is definitely not an easy sell.

I do get that it's a sweeping statement, which is always unfair to the exception. But take a look at the extremely guarded private equity (PE) funds that also have very select clients, and usually very conservative ones, all who require signing off on investments. Some big PE firms were actually dipping into crypto even in 2016 and by early 2017 were even launching their own ICOs already - not only opening up new asset classes in their portfolio but actually expanding to grab more of the market beyond the recognsed coins of Bitcoin and the top 5. Of course, there will always be those who cannot ever be sold the idea, but with almost every recession-free asset slipping... and Bitcoin moving up every year, hard for people to ignore maths.
hero member
Activity: 616
Merit: 603
Most institutional investers are seeking to make marginal gains from any derivative that has had a history of previously attaining high prices multiple times, with the hopes that such assets once again reaches their ATH in order to reap the benefits. Recently if you may have noticed the stock prices in NYSE fell by a marginal percentage which later displayed a high percentage investment into Bitcoins and other cryptocurrencies which was signified by a price rise in the altcoins segment. This is usually a rosy picture which indicates that such investors are hegding their funds into cryptocurrencies in the event of a stock turnoil.
hero member
Activity: 1834
Merit: 759
Quote
“Regulators are not banning the development of cryptocurrencies, but are trying to better regulate the market, which should help the industry mature,” Mr. Lai said. “If the regulatory stance gets clearer, large funds will be more assured and willing to commit significant capital.”

Only if the regulations are fair, of course. If it gets to a point where putting money in crypto is more trouble than it's worth, then why would anyone bother? That's the part where it gets tricky.

But yeah, I have mixed feelings about institutional investors actually entering the market. They're going to be in it for the money, not the technology, so it will only contribute to volatility as they play with their money, and may actually hurt actual adoption in the long run.
full member
Activity: 392
Merit: 137
I am opposed to the fact that a large number of coins are concentrated in one place. This lays a mine of delayed action under the entire market. We have seen for 4 months of this year how it works. Whales can easily reduce and increase the price. I'm not against volatility but the big players can increase the price decline period and it will be bad for everyone. I would like more if 200k bitcoins bought 200k people.
legendary
Activity: 2576
Merit: 1655
Reports are increasingly indicating that bitcoin’s recent drop of 70% from its December record highs of nearly $20,000 has spurred a renewed interest in the BTC and cryptocurrency markets from institutional investors.

Read more: https://news.bitcoin.com/institutional-demand-bitcoin-crypto-resurges/

We have witnessed this during the December peak, when bitcoin future contracts offering where started by institutional investors CBoE and CME and short term the effect is really good as the market goes into a frenzy and hitting all-time-high. What bothers me though is the long term impact as we plummet so hard even bottoming at $6K.

So I'm not totally sold on them joining the picture. I hope though that I'm wrong and this time whatever institutional investors entering, will really brought a good and lasting effect to the ecosystem.
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