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Topic: Why everyone thinks institutions will buy Bitcoins from exchanges? (Read 1074 times)

jr. member
Activity: 392
Merit: 1
You see that buying on the trading floor is far more secure than buying black markets and whales,
Institutions can easily accept the world of cryptocurrency with ease. Bitcoin has travelled really far and I believe the time is really here with us where governments are beginning to appreciate the value ad philosophy behind bitcoin. I think the institutions are ready to accept bitcoin and use it in various business transactions.
newbie
Activity: 28
Merit: 0
When large operators reduce their payloads: they carry out transactions not in rexchanges but P2P. Nobody wants to exaggerate the market by buying hundreds of millions of coins just to be dumped by the bear. If you exchange 1k or 10k bitcoins at once, the price will suddenly surge in the opposite direction (even if the position will soon be filled by the bot). No idea how much will be exchanged to fiat in "blackmarket" or alternative routes. Yes they would not buy Bitcoin in a single shot but they would buy it through a systematic investment plan, focusing on buying smaller units at higher frequencies.
full member
Activity: 231
Merit: 100
The market is in a state of rapid reflexes, both up and down. This is the result of trading being dominated by short-term investors who are using leverage and structured derivatives to speculate on the day. This, of course, limits the medium to long term growth momentum of the market.
newbie
Activity: 154
Merit: 0
You just had to look at the manner in which Bitcoin Futures were introduced, to see where Bitcoin ETFs would be going with this. Governments will not allow institutional investors to invest large amounts of money into a speculative market.
newbie
Activity: 31
Merit: 0
I see normal people are getting influences by many negative comments and I am afraid that could cause serious troubles but they should use their own brain to decide that institution can buy their bitcoin very easily and if those institution sell their assets the prices can get down
xTz
newbie
Activity: 74
Merit: 0
You see that buying on the trading floor is far more secure than buying black markets and whales,
They will buy for sure because the market is very cheap and if you invest right now your profit will be much higher. Don't miss this opportunity, in any market the bear market is the best to invest time to enter the market.
What makes you think is cheap? Maybe under 1k is cheap.
With that thinking when bitcoin drop'd from 20k to 13k same said all, now bitcoin is cheap ..... buy.... then you know the result. With other words... you cannot know where is the bottom, bitcoin dip from 30 dollars to 2 dollars that over 90% drop.
I can almost say with certain that institutions will not buy from exchanges, so price will be unaffected. There are plenty ways to avoid purchasing from exchanges. They will buy external and sell internal Smiley, so price can literally go much more lower, for those who use it as a payment only are not a problem, for traders can be a pain.
Remember: Bitcoin is a peer to peer cash system, not a peer to store of value, nor a peer to speculation or peer to trade.
Only then you gonna see the real value of bitcoin, when you start to use it as a payment.
Cheers, hope i do not offended too many traders Smiley
jr. member
Activity: 72
Merit: 1
You see that buying on the trading floor is far more secure than buying black markets and whales,
They will buy for sure because the market is very cheap and if you invest right now your profit will be much higher. Don't miss this opportunity, in any market the bear market is the best to invest time to enter the market.
legendary
Activity: 3542
Merit: 1965
Leading Crypto Sports Betting & Casino Platform
The institutional capital will definitely enter the Bitcoin market, but I predict that it would be in a more regulated environment. You just had to look at the manner in which Bitcoin Futures were introduced, to see where Bitcoin ETFs would be going with this. Governments will not allow institutional investors to invest large amounts of money into a speculative market, without proper regulation to protect the consumers.

This is probably why they are looking at exchanges like Gemini that are more compliant with the current financial sector.
newbie
Activity: 84
Merit: 0
You see that buying on the trading floor is far more secure than buying black markets and whales,
full member
Activity: 518
Merit: 100
Most of the institutional and big investors never buy from the exchanges, they mostly buy it through OTC. As buying from exchanges will cause the price to skyrocket and it will be costly for them to purchase this way. But by buying through OTC they buy at a fixed price and get the amount of coins they want in a single go.
newbie
Activity: 196
Merit: 0
I really do believe this project. But some people are just manipulating the market overall. Few years ago, there was not so much problem with this market. When people got known that a huge amount of money can be earned from this market, they started pupm and dump. But ultimately, all are suffering. So I think, we all general traders move for fair way foreard to have a better market.
jr. member
Activity: 161
Merit: 8
I don't think big institutions will make a move in buying more btc this time since the market has not stabilize yet. I believe that in due time where it has already stabilized and the fluctuation will no longer drop high just like the current situation then the big institutions will start buying more btc.

Agreed. It is even easier to the big ones to just make theyr own cripto and release it to the market.
newbie
Activity: 280
Merit: 0
I don't think big institutions will make a move in buying more btc this time since the market has not stabilize yet. I believe that in due time where it has already stabilized and the fluctuation will no longer drop high just like the current situation then the big institutions will start buying more btc.
jr. member
Activity: 103
Merit: 2
Mainly a large number of coins buy by the institutions based on this people of investor only invest a little portions of money in the market mainly they do this because of this they do various types of project which is related with this coin and market based on this they buy 95% of coins.
newbie
Activity: 126
Merit: 0
I don't really agree with you. The big institution getting involved with Bitcoin always brings a spark to the market. Blockchain technology is completely a decentralized system and no one can control this.
newbie
Activity: 28
Merit: 0
Well written, I also think that to use btc as a tool, organizations can take over and place the price wherever they want, because the market is too small to handle it.
hero member
Activity: 1190
Merit: 534
We call big whales big not because they have a high amount of capital but they think in a broader aspect. It is true that they won't buy Bitcoins in a single shot but they will buy it through a systematic investment plan which focuses on buying a smaller number of units at the higher frequency of time. It is true that they might not buy from the exchanges directly but they will diversify their destinations when it comes to the acquisition of Bitcoins.
xTz
newbie
Activity: 74
Merit: 0
@cellard
Yeep is exactly what i mean, they buy from external sources, and price will be unaffected, then they dump into exchanges coins and prices will drop like stone.
Ofc this will happen behind closed doors and far away from regular people view.
We can see these effects even today after MtGox stolen bitcoins. Who knows how many offshore companies own millions of bitcoins.
I give one simple example. Look at Winklevoss twin brothers, they bought their bitcoins from auctions, so bitcoin price was unaffected when they pumped those money at that time period. And examples can go on forever.

What's the problem for them if the price goes up after buying? If they want to buy a large amount, they can open accounts in several exchanges and see how their investment is revalued instantly. The OTC deals can be interesting for them if they can get a price quite below the market price, if not, I think the exchanges are a better option for them.
Really? You do not see the problem?
When influencers buy bitcoins from 3rd party sources, then they influence you to buy the market so they can dump their coins at high prices? What i want to say, be aware in who you trust, judge with your own mind, then decide what you do with your money. Otherwise you can get burn't in this market.
Do whatever you want, i don't care about your money. Me, i expect to go much lower bitcoin, i am prepared to use bitcoin at price of $500/btc. Question is: are you prepared to see that price?
sr. member
Activity: 700
Merit: 254
The OTC transactions do exist exactly for that purpose. If you were to exchange 1k or 10k bitcoins all in one go, the price will sudden spike in the opposite direction (even if positions will be soon filled up by bots). Nevertheless, you might need some sort of exchange to cash out eventually. No idea how much would be exchanging to fiat in the “blackmarket” or alternative routes.
legendary
Activity: 3542
Merit: 1352
This is not a hidden or secret thing in the cryptomarket. Aside from not getting any potential discounts or lower-than-market price, it also gives them a good leverage since the price won't move even after eating up a huge volume of the coins. Same when big mining companies offload their coins: they do the trades not in rexchanges but P2P. There's just too many benefits in doing P2P for buyers and sellers, especially in moving large amounts. No one wants to inflate the market by buying hundreds of millions worth of coins only to be dumped at by bears.
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