Decreasing Bitcoin price volatility

[hatshepsut93]

Volatility is happening because no one has any idea how to objectively calculate Bitcoin's value, and Bitcoin still seems to be pretty young as investors continue to discover it as a legitimate asset and not just some beanie baby like they though in the past. Volatility will decrease with time when Bitcoin will stop being viewed as "money of the future" and will become money of the present. Maybe it will take 10 years, maybe 20 - and it will be a gradual process, and some volatility will always remain, and it will be higher than that of fiat currencies, because there's no central bank of Bitcoin that could stabilize it.

[Coin_trader]

It's normal to see this kind of volatility for an asset that is currently hot on eyes of all traders and investors especially for institutional investors. Fresh billion of dollars in fiat are flowing in on crypto market so it's expected that cause price fluctuations when when big money plus hype mix in the air of crypto.

[Kakmakr]

Well, it depends on what those institutions does with their bitcoins. A while back we had auctions for recovered stolen coins and everyone was speculating as to what would happen, if those large amounts of coins, would enter the market again. Now we know that the coins went to a owner that hoarded the coins and the price stayed stable.

If the owner decided to sell all of those coins at the same time, the price would have taken a nose dive..because a sudden injection of large amounts of coins into the supply side.. would send the markets into a frenzy. (The speculators will see this as a dump and it will cause a trigger affect of other people selling their coins)

The same goes for these institutional buyer.... if one of them dump Billions of Dollars worth of coins onto exchanges... then the price will come crashing down. (causing a lot of volatility)  

[tinopener]

Well, it depends on what those institutions does with their bitcoins. A while back we had auctions for recovered stolen coins and everyone was speculating as to what would happen, if those large amounts of coins, would enter the market again. Now we know that the coins went to a owner that hoarded the coins and the price stayed stable.

If the owner decided to sell all of those coins at the same time, the price would have taken a nose dive..because a sudden injection of large amounts of coins into the supply side.. would send the markets into a frenzy. (The speculators will see this as a dump and it will cause a trigger affect of other people selling their coins)

The same goes for these institutional buyer.... if one of them dump Billions of Dollars worth of coins onto exchanges... then the price will come crashing down. (causing a lot of volatility)  

Yes, this is what I was thinking along the lines of.

Essentially, big institutional players are simply less likely to manipulate the market than whales, if only because of regulatory oversight.

Also, thank you for taking the time to read the OP properly and understanding that this thread is actually about which is potential decreasing volatility caused by institutional buy-in as has been proposed quite often by the media recently.

[BrewMaster]

Essentially, big institutional players are simply less likely to manipulate the market than whales, if only because of regulatory oversight.

you are forgetting that a lot of these institutional investors are the same corrupt wall street manipulators who have been doing a lot of shady things under the SEC's nose with their knowledge and getting away with it. i don't see how they are going to change tectics in bitcoin where it is not even as regulated as stock market.

[slaman29]

That's the theory allright, but it's anyone's guess on how Bitcoin will react. I mean, if it's true we had MicroStrategy and PayPal come into the game, but still it needs Elon Musk to Tweet to send the markets crazy for new ATH, then I doubt this stability has really come into the factor here.

It'll get there but it'll come naturally when 10% of the world is into it. Now we're at 1%. Still early;)

[kooboat]

It is possible  the institutional  involvement  might have contributed  to the current relative stability  of bitcoin. Bitcoin  has always revolved  around  a particular price range. We must also not lose   sight of the fact that bitcoin  hit a new all time high  within the last 24 hrs. It seems bitcoin  is getting a new support  at $50k without  any resistance.  At the moment, I see the less volatility  of bitcoin  as a regular  phenomenon.

[taufik123]

That's the theory allright, but it's anyone's guess on how Bitcoin will react. I mean, if it's true we had MicroStrategy and PayPal come into the game, but still it needs Elon Musk to Tweet to send the markets crazy for new ATH, then I doubt this stability has really come into the factor here.

It'll get there but it'll come naturally when 10% of the world is into it. Now we're at 1%. Still early;)

there are still many who have not entered bitcoin. But that 1% can also affect the price of bitcoin. Bitcoin is currently hitting its latest ATH at $ 51k and it's pretty awesome. Elons musk is the trigger for this new ATH and maybe some other big companies will start to enter.
elon musk's tweets are also influential because they have a lot of followers.
This is just the beginning. Still half way to the top of the $ 100k price tag and would be pretty awesome.

[isaac_clarke22]

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It might as well due to cause of whales in the market. Though them alone isn't gonna suffice actually.
We have been experiencing volatility from the start already so we can't conclude that it's all because of only whales, influencers, institutions (as you mentioned).
Maybe it's just because Bitcoin is  almost global, with some constraints to those countries that have Bitcoin banned.

[Argoo]

Institutional investors can't lower the Bitcoin price volatility.Mass adoption across multiple small investors and ordinary people probably can lower the price volatility.
Institutional investors will just buy and HODL in the long term,which will remove some bitcoins out of the market circulation,therefore lowering the supply will increase the price volatility.
On the other hand,mass adoption and using BTC fore more daily purchases will increase the BTC market circulation and probably lower the Bitcoins held by the HODLers.This increased BTC supply will lower the price volatility.

It should also be noted that with an increase in the price of bitcoin, the fear of its holders for their money invested in it will grow. In this case, they will be increasingly interested in price movements in the cryptocurrency market and news that may affect this market. In this case, they will be very sensitive to the appearance of various bad news, and if this coincides with the usual market fluctuations in the downward direction, then it is likely that the manifestation of even slight volatility can turn into a rapid fall and collapse of prices throughout the market. Therefore, I think that as the price of bitcoin rises, so will its price volatility.