Topic: Would bitcoin's volatility drop when big institutions get involved in it? (Read 345 times)
January 11, 2018, 03:35:43 PM
As long as institutions stick to Bitcoin tied instruments, we'll keep the heavy fluctuations since the price of these instruments is directly connected to what happens on our traditional exchanges. The future markets are a perfect example of that. However, if institutions have the option to trade with actual Bitcoins within a centralized and regulated environment, it means that we'll probably see a huge number of coins flow into their markets, which might actually result in less volatility, but what does less volatility in this market actually mean? From 30% in a day to just 10-15% per day? Institutional capital will never be able to tame Bitcoin entirely.
January 11, 2018, 02:26:59 PM
Is it true that the high volatility of bitcoin would drop when big institutions get involved in it as now we see big financial firms entering bitcoin market and wall street firms getting ready to do so?
The amount of money in bitcoin does not affect the volatility, bitcoin is just as volatile as ever, if bitcoin was worth 100k we will still see 40% drops in the price in the matter of weeks the difference is that the amount of dollars won or lost at that stage will be enormous. January 11, 2018, 07:49:31 AM
I believe that when institutions suddenly had their hands over Bitcoin, it can make big changes to the transaction and it can either be beneficial or not, depending on the institution.
December 14, 2017, 11:30:05 PM
Is it true that the high volatility of bitcoin would drop when big institutions get involved in it as now we see big financial firms entering bitcoin market and wall street firms getting ready to do so?
That would be possible but then again whales will be fighting each other out just to control the value of bitcoin, if these financial firm comes into play they will manipulate the price and i think that would be good so that bitcoin can have a stable price, but whales wouldnt like this and the war in the market might come into place.
December 14, 2017, 10:48:27 PM
I would really like to say yeas but bth it is almost impossible to predict such things. From one side imho BTC needs to increase its volume to be less volatile but from another side there is a question about the amount of growth needed to become stable. Bitcoin have almost endless spase for increasing its value. If major institutions will get involved in btc then afterwards maybe even a country will start using BTC as a national currency and it will pump the coin once again.
December 14, 2017, 08:00:06 PM
Is it true that the high volatility of bitcoin would drop when big institutions get involved in it as now we see big financial firms entering bitcoin market and wall street firms getting ready to do so?
Well, now that the futures have now been implemented in here, we can say that since they have been released the price has been only moving between $16000 and $17500.
What a coincidence...
To answer OP's question, some people thought that the launch of Bitcoin Futures was going to put a stop or at least decrease the high volatility, but it wasn't like that because the past 3 days the price has been: high 18k and low 15.7k. Remember that bitcoin is volatile by nature so it's very unlikely that these new players entering the btc market will make a significant impact (for example, putting a stop to Bitcoin volatility), especially in the short-term.
December 14, 2017, 07:18:17 PM
No, since bitcoin is a highly volatile investment already and morr specifically bitcoin is decentralized, anyone could have it, what big institutions could do, is instead of trying to control bitcoin, they will create their own cryptocurrency that will compete with bitcoin and that's the only thing that they can control.
December 14, 2017, 06:29:21 PM
Is it true that the high volatility of bitcoin would drop when big institutions get involved in it as now we see big financial firms entering bitcoin market and wall street firms getting ready to do so?
They can't make the volatility drop instantly, it will drop but this will happen in long term, not in short term. Bitcoin is not usd or eur currency. It's different because of its nature in cryptographic structure.
December 14, 2017, 05:58:15 PM
Is it true that the high volatility of bitcoin would drop when big institutions get involved in it as now we see big financial firms entering bitcoin market and wall street firms getting ready to do so?
Well, now that the futures have now been implemented in here, we can say that since they have been released the price has been only moving between $16000 and $17500.
What a coincidence...
anyway, the price is pretty high right now, so i am not complaining because it increased A LOT during the last few months and days, so anyone who wants to complain about the price deserve to have their balance on ZERO.
But yes.. it seems that it is now less volatile than before.
December 11, 2017, 01:18:00 PM
I thought it will be the opposite, because they will manipulate the Bitcoin price to gain from the Bitcoin Futures, but it was
structured in such a way to prevent that. They work within different margins and they also built safeguards into the system to
shutdown trades, once these thresholds are reached. No amount of price manipulation can benefit them.
I also think that they will increase the volatility, just for fun... This is a non-regulated playground for them, so they can do anything they want in this sandbox... Nobody will stop them, so the price will go even higher or lower than before... At first, they can win on price increase, because now the average joes will also buy a portion of bitcoin, and after the price has raised really high, they can start to short it and the newcomers and the weak hands will sell out and they can buy again after the shorting period... I hope it won't happen... structured in such a way to prevent that. They work within different margins and they also built safeguards into the system to
shutdown trades, once these thresholds are reached. No amount of price manipulation can benefit them.
December 11, 2017, 01:06:37 PM
Although Bitcoin is very volatile. It can be reduce it's volatility if the distribution is fair. There's so many whales that are holding Bitcoins. Large portion of Bitcoins holds by them. If the distribution is fair. I think we can reduce volatility. But we have no power over that. Anyway, that's only ome of the reasons that drives Bitcoin's volatility. There's so many reasons why Bitcoin is volatile in nature. But usually the demand and supply of Bitcoin. But i think it's better this way. It generates good amount of profit. If the volatility is reduced. I think we could not get much profit from Bitcoin.
December 11, 2017, 12:42:22 PM
I thought it will be the opposite, because they will manipulate the Bitcoin price to gain from the Bitcoin Futures, but it was
structured in such a way to prevent that. They work within different margins and they also built safeguards into the system to
shutdown trades, once these thresholds are reached. No amount of price manipulation can benefit them.
structured in such a way to prevent that. They work within different margins and they also built safeguards into the system to
shutdown trades, once these thresholds are reached. No amount of price manipulation can benefit them.
December 11, 2017, 12:31:37 PM
Yes, introducing many large institutions will further stabilize the fluctuations. But don't forget that if one of the larger holder(500BTC+) decides to liquidate its position to fiat, the market will swing.
December 11, 2017, 12:14:34 PM
I think entering the crypto currency market of large financial companies will have little effect on reducing bitcoat volatility. Volatility will be significantly reduced when a significant part of the world's population will use bitkoyn and when it reaches its sustainable price level. While bitkomnom enjoys a small part of the population, its volatility will manifest itself every time when the market will be any changes or will receive relevant information that may affect the market change.
December 11, 2017, 09:55:02 AM
Is it true that the high volatility of bitcoin would drop when big institutions get involved in it as now we see big financial firms entering bitcoin market and wall street firms getting ready to do so?
For me, it will drop the high volatility of bitcoin because big companies has a lot of money to invest in bitcoin this could attract more investors if huge companies like apple comes in to bitcoin anyways to make it more stable like gold, bitcoin's market cap must reach where the gold's market cap anyways it is a long road ahead for bitcoin and bitcoin is still very young it will takes many years to be stable as gold. 
December 11, 2017, 09:15:45 AM
When you look at volatility as a percentage, you will see that it has been dropping steadily for a really long time now.
This trend will definitely continue and volatility will keep decreasing as the market cap increases.
It will probably still take a pretty long time before we reach the same level as gold or traditional currencies.
Bitcoin volatility:
USD/EUR volatility for comparison:
Source: https://www.buybitcoinworldwide.com/volatility-index/
This trend will definitely continue and volatility will keep decreasing as the market cap increases.
It will probably still take a pretty long time before we reach the same level as gold or traditional currencies.
Bitcoin volatility:
USD/EUR volatility for comparison:
Source: https://www.buybitcoinworldwide.com/volatility-index/
December 11, 2017, 09:09:17 AM
Is it true that the high volatility of bitcoin would drop when big institutions get involved in it as now we see big financial firms entering bitcoin market and wall street firms getting ready to do so?
Yes it is true that the high volatility of bitcoin would drop when big institutions like wall street, morgan Stanley, Citi bank and many more corporates. The big institution's participation makes the flow of money smoother and there won't be much bigger volatility as used to be previously on some big transactions or some big changes in cryptocurrency market.
December 11, 2017, 09:00:37 AM
maybe not at first. things may get even worse for a while at first when they get involved as the market would be shocked. like what you see each time there is a big adoption.
for example the mainstream adoption of this month: rise from 10k to 19k and drop to 12k and back to 16k. that is a hell of a volatility.
but soon this will go away.
for example the mainstream adoption of this month: rise from 10k to 19k and drop to 12k and back to 16k. that is a hell of a volatility.
but soon this will go away.
December 11, 2017, 08:45:28 AM
Is it true that the high volatility of bitcoin would drop when big institutions get involved in it as now we see big financial firms entering bitcoin market and wall street firms getting ready to do so?
At first, I thought so, but after seeing how the futures trading goes at CBOE today, I'm not so sure
Rallying to top at $18,000 and got halted twice. It was just a euphoria probably, though. I'd expect the volatility to drop after Bitcoin adoption in conventional financial institution got more common, which I expect it to happen sooner rather than later.
December 11, 2017, 08:28:13 AM
BTC need this! Big players can`t accept such high volatility! For last 30 days BTC did x2.3, it`s crazy!
Jump to: