Topic: Why people are hype when they hear the words "institutional investment"? - page 2. (Read 205 times)
August 06, 2021, 09:06:40 AM
they are like investors coming to buy BTC they are pouring their money to bet for Bitcoin. that means the demand for BTC increased again.
we accused elon of dumping when the price dips months ago. and just like institutions they also dump, you can say they are also whales after all they want to profit from this market.
August 06, 2021, 08:58:27 AM
It's just me but I think the reason for the hype behind this is that it's coupled with big money since institutions that are mentioned are corporate giants and I think it's a no brainer that they are going to pour in large amounts of money.
August 06, 2021, 08:25:07 AM
Institutional investments will be in millions.
It would be time to learn the difference between a million and a billion, because there is a big difference between someone investing $250 million which is petty cash in a market worth more than $500 billion. On the other hand, $250 billion would make a total boom - I dare not even speculate how much the price of BTC would jump.
While some are looking forward to institutional money, one should know that they will not invest in Bitcoin because they think it is something that can change the world - they want to profit. The price effect is inevitable with their investments, but we also know what will happen when one of them dumps on the market hard.
August 06, 2021, 01:20:00 AM
Institutional investments will be in millions. This will give more confidence to the common man. Same time these institutional investments have more control over the market. Based on the statement from the Fidelity it is clear to see large scale firms are more into acquiring of majority of the bitcoin. This will make governments to come up with regulations, but the market turns to be a controlled one than an independent market as now.
August 06, 2021, 01:13:30 AM
Basically the expectation is that huge amounts of money is going into the cryptocurrency space. Sure institutional investors going in is good in terms of price increase and by giving more legitimacy to the industry, but mostly the people who get a bit too excited are those who want their bags to pump in a short timespan. In which, we definitely don't want huge price spikes. We'd rather see it being a slow and steady increase as to make it more sustainable.
August 06, 2021, 12:35:46 AM
Very well said @Tytanowy Janusz, institutional investment also is a sign of confidence, this big company would not just invest without evaluating the future of bitcoin and crypto as a whole, so with that confidence, the crypto market will be attractive to potential investors and more money will be flowing in.
Imagine, if they keep investing and hold it, the supply will reduce, hence the price will rise, that's the simple effect of institutional investment.
Imagine, if they keep investing and hold it, the supply will reduce, hence the price will rise, that's the simple effect of institutional investment.
And 5% of wallet of huge investment found is like an anchor for price for both directions which helps adoption (no volatility FUD). If price doubles this 5% change to 10% and and found is selling because its target is to have 5% invested in BTC. When price dumps this 5% drops to 3% and they buy to reach 5% target. So price stabilize a lot after huge players comes in.
Price stabilization with big volumes = more pro market makers = even more stable price.
August 06, 2021, 12:29:39 AM
Very well said @Tytanowy Janusz, institutional investment also is a sign of confidence, this big company would not just invest without evaluating the future of bitcoin and crypto as a whole, so with that confidence, the crypto market will be attractive to potential investors and more money will be flowing in.
Imagine, if they keep investing and hold it, the supply will reduce, hence the price will rise, that's the simple effect of institutional investment.
Imagine, if they keep investing and hold it, the supply will reduce, hence the price will rise, that's the simple effect of institutional investment.
August 06, 2021, 12:25:52 AM
"Fidelity Investments Inc., commonly referred to as Fidelity, earlier as Fidelity Management & Research or FMR, is an American multinational financial services corporation based in Boston, Massachusetts. The company was established in 1946 and is one of the largest asset managers in the world with $4.9 trillion in assets under management"
https://en.wikipedia.org/wiki/Fidelity_Investments
4.9 trillion $.
https://www.fidelitydigitalassets.com/bin-public/060_www_fidelity_com/documents/FDAS/bitcoin-alternative-investment.pdf
Paper made by Fidelity that suggest that every well-balanced/diversified portfolio should have at least 5% invested in BTC. If they will apply this to their 4.9 trillion$ wallet ... its 245 billion $ invested in BTC. That's more than 50 times more than mistrostrategy.Thats 30% of btc supply! Maybe 50% of existing, not lost supply. Thats the amount of money we are talking about. Fidelity needs to buy 50% of BTC supply just to "diversify their porfolio" and thats just 1 big institutional investor. There are many others.
And when you have 4.9 trillion $ in assets ... you have long tentacles in the governments of many countries to help push addition and proper regulations.
https://en.wikipedia.org/wiki/Fidelity_Investments
4.9 trillion $.
https://www.fidelitydigitalassets.com/bin-public/060_www_fidelity_com/documents/FDAS/bitcoin-alternative-investment.pdf
Paper made by Fidelity that suggest that every well-balanced/diversified portfolio should have at least 5% invested in BTC. If they will apply this to their 4.9 trillion$ wallet ... its 245 billion $ invested in BTC. That's more than 50 times more than mistrostrategy.Thats 30% of btc supply! Maybe 50% of existing, not lost supply. Thats the amount of money we are talking about. Fidelity needs to buy 50% of BTC supply just to "diversify their porfolio" and thats just 1 big institutional investor. There are many others.
And when you have 4.9 trillion $ in assets ... you have long tentacles in the governments of many countries to help push addition and proper regulations.
August 06, 2021, 12:13:25 AM
I just notice that the words "institutional investment" is very huge in crypto.
can you tell what is the expectation when institutional money is invested?
Do they bring the progress of adoption in the crypto space? or they are just like the whales who buy cheap and sell high for a profit?
I think adoption would result in regular use, but if they'll buy for investment purposes only, that's not "adoption".
can you tell what is the expectation when institutional money is invested?
Do they bring the progress of adoption in the crypto space? or they are just like the whales who buy cheap and sell high for a profit?
I think adoption would result in regular use, but if they'll buy for investment purposes only, that's not "adoption".
Jump to: