Retail is selling bitcoin to institutional players

[jcojci]

I am not panic when seeing a down for the price instead still calm down and search my chance to buy more. I learned a lot that I don't need to panic when the situation becomes bad because that will be another good time for me to accumulate more.

I know that I just need to Hodl and stay aware in any situation and condition so I can take benefit for myself. Many people also learned the same where we need to stay calm and remind each other to hodl on tight. While we still have a chance to have more Bitcoin, we should use this for our own advantage.

There will be a time for us to sell Bitcoin especially in a very highest price. So we need to wait and just still hodl tight our Bitcoin. We should become a strong hand person to keep our Bitcoin.

[Patikno]

For anyone who sells Bitcoin quickly, especially selling when experiencing a loss, then we can be sure that they will "Regret" in the future or maybe it could be in the next 3-5 years. What are these people thinking, when it is clear that Bitcoin has been glanced at by many institutions, even several countries, and has become the center of attention. When that happens, then don't blame anyone, blame yourself, because news like this should have been heard by almost everyone. So you should know what to do before it becomes regret.

[cryptomaniac_xxx]

Let's see if those of you who sold out of panic when the price went down to $80K or sold for profits because the price went up $10 learn this lesson. The institutions have it clear. There are more and more of them and many more are going to buy bitcoin in the future. And they will not sell for many years, some may never sell bitcoin and simply borrow against it as many already do or take yields in some other way.

Thanks for the reminding, but for some of us who have been in the game for long or at least have experience once cycle really knows, that panic selling is not a thing to do and should be avoided at all cost.

Although I understand that first time or newbies will have this kind of mentality to sell when the price is going down because they see that they are losing money. So it's about normal, but then again, it's a expensive lessons to learn.

If you sell now in a few years don't complain that institutions have hoarded bitcoin, and that it's unfair and capitalism and such.

Just HODL.

Specially that the supply of Bitcoin is dwindling every 4 years and we might hit 99% of almost all Bitcoin might have been mine in the last couple of halvings. So it's going to be very hard to get and accumulate it. So as early as today, and again, looking long term, it's better to just be a long term HODLer.

[lionheart78]

Let's see if those of you who sold out of panic when the price went down to $80K or sold for profits because the price went up $10 learn this lesson. The institutions have it clear. There are more and more of them and many more are going to buy bitcoin in the future. And they will not sell for many years, some may never sell bitcoin and simply borrow against it as many already do or take yields in some other way.

If you sell now in a few years don't complain that institutions have hoarded bitcoin, and that it's unfair and capitalism and such.

Just HODL.

There is nothing wrong in selling for profit or deciding to sell at a certain stop loss percentage.  After all, it is their BTC, not ours.  Let them decide what they wanted on their BTC holdings, we should just focus on our holdings.

It is the right of the owner of BTC to decide whether they want to cash in or cash out for their investment, we have been repeating ourselves to remind them of the possible good future of the Bitcoin market, even to the extent of giving an example of institutional adoption and showing how the market is shifting to institutional investors, but if they don't listen let them be.

Let them realize it themselves through their personal experience.

There's no problem with selling Bitcoin if you have already made a profit. Why not sell them and wait again when the price drops to a much cheaper price?
I am not FUD or something influencing other retail traders to sell their holdings, but I just don't want to lose this opportunity while it's still in the 6 figures. Maybe this is the highest price this Q2.

See, this is precisely the (wrong) mindset I am talking about.You are not going to get more profitability trying to time the market than just HODLing, and if you are going to tell me you are I expect you to provide evidence of it, long term, not just one trade.

It looks like I have the same thought with @Bitmaxz,  It is not a wrong mindset IMO, it is good to sell when the price is at its peak and rebuy when the price goes down,  This way the person's holdings will increase.  I don't think I need to give an example for this because it is obvious that an extra profit from selling high will yield more BTC when buying low.

Or I think you'd better sell the partial amount of your holdings;

Selling partially is OK IMO depending on the situation.

Whole or partially is fine in selling when Bitcoin is at its peak, and repurchasing with the money from the previous sales (intact) will yield more BTC when buying at lower price.  Actually this is way more brilliant than just holding BTC.  Remember Bitcoin market moves in a cycle, one just needs to get the right timing to execute the sell-high buy-low strategy every cycle.

[moneystery]

we know that now institutional investors and countries have started to look at bitcoin as an asset for them to invest in... recently twenty one capital bought bitcoin worth $ 459 million dollars and they plan to buy more bitcoin until their goal is achieved. and that's just one, in the future we will see more institutions and countries that will buy bitcoin in larger quantities.

this shows that institutional investors and countries have seen the potential of bitcoin and they have the resources to support it. and if they are like that, retail investors should also take the same approach to investing in bitcoin for the long term and take every opportunity to accumulate more.

[m2017]

Let's see if those of you who sold out of panic when the price went down to $80K or sold for profits because the price went up $10 learn this lesson. The institutions have it clear. There are more and more of them and many more are going to buy bitcoin in the future. And they will not sell for many years, some may never sell bitcoin and simply borrow against it as many already do or take yields in some other way.

And what will they do with bitcoin, which they will never sell? The only thing that comes to mind is issuing securities secured by bitcoin to attract investment. That is, indirect earnings on bitcoin.

If you sell now in a few years don't complain that institutions have hoarded bitcoin, and that it's unfair and capitalism and such.

What if this is a planned sale?

I understand that selling bitcoin in a panic or with a small profit is a bad decision, but there can also be sales for current expenses or previously planned ones.

Any market is unfair in principle. One way or another, a narrow circle of people will always concentrate the majority of assets. That's exactly what happened with bitcoin. Isn't it?

Just HODL.

Til the end?

The hold can't last forever. One day, sooner or later, everyone will sell and at that moment, someone else will buy. It is possible that the buyer will be an institutional investor.

[Dr.Bitcoin_Strange]

Those investors that are selling their Bitcoin due to price panic really needs to be more educated about Bitcoin, they think that Bitcoin is like the other pump and dumb shitcoins  which after they dump, they don't pump again. I believe that anyone that has a concrete knowledge about Bitcoin, will not sell cheap but would even strive to accumulate more because they know better, that in the future, the price of Bitcoin will even surge past the current $100k mark to $200k and more. Based on some retail investors strategies too, they sold at $100k - $109k and are waiting for bear market, so that they can buy at a low price. Definitely the bear market will come.

[cabron]

It has always been this way, retail right from the beginning have always be the most emotional in this crypto space, they always dump when they should hold and the always buy when they should sell, let the real players buy from retailers I don't have any problem with that but they will be back to buy the top, it's always what they do.

I think this crypto space won't be fun without retailers.

And its also because of the institutions and whales from the start because whenever they dump, the retail investors are also panicking to sell before their profit gets lesser. This time, because the market doesn't wait for another halving to move up, its gonna be best for retailer to keep the coins they acquire and hold it for dear life.

It going to be more scary for retailers after this bull market because these institutions are going to floor it.

[adultcrypto]

This was bound to happen because retails entered earlier and are probably overwhelmed by the profits they have seen. On the contrary, the institutions did not start early and having seen the potential in Bitcoin, are willing to pay anything to get it from the retails who will readily sell with excitement that they have made a kill. Therefore, I'm not surprised at the new turn of events in the bitcoin space. I know some details are not selling but buying in line with what the institution are doing.

[fuguebtc]

I read this news a few days ago and I am not surprised nor do I blame those who sold bitcoin.

It's not just panic selling, but also because retail investors are very different from institutions. Big investors, institutions, they have a lot of money and they don't just invest in bitcoin. The amount they invested in bitcoin is not even 10% of their total assets, so they can play the long game . Meanwhile, small investors mainly invest with savings, even I believe many people are going all in on bitcoin with the hope of earning significant profits to cover their current life. How can they hold BTC for 10 to 20  years when they are struggling with their daily lives?
I believe bitcoin can reach $1 million in the future and I can hold until then but my family, especially my parents, can't wait until then so I will have to sell at some point.  This is the life of the retail investor.

It can be  said that there is a huge difference between organizations and small investors in terms of capital size , resources...So  we cannot compare or assume that those who have sold are stupid .

[BitMaxz]

See, this is precisely the (wrong) mindset I am talking about.You are not going to get more profitability trying to time the market than just HODLing, and if you are going to tell me you are I expect you to provide evidence of it, long term, not just one trade.

I don't know why it become wrong mindset maybe we have different mindset how to become profitable. If HODL is your ways to be profitable even the price is dropping I don't see any problem if you can wait for long.
People have different mindset that is why there's a panic sell because they can't handle the emotion during bear market.

My point is that I do not want to miss the opportunity to sell while the price is higher; even if you only take your profit and leave the rest to hold, that is fine.
Because we do not know what will happen in the future, we are still a long way from the next block halving, and there is a chance we will be able to buy BTC at a much lower price and reinvest the profits.


Is that a bad mindset? Maybe we do have different perspective for you its wrong but mine its not.

[Zaguru12]

~

I don't know why it become wrong mindset maybe we have different mindset how to become profitable. If HODL is your ways to be profitable even the price is dropping I don't see any problem if you can wait for long.
People have different mindset that is why there's a panic sell because they can't handle the emotion during bear market.

Personally either I don’t see it as a bad mindset since the goal is definitely to have more bitcoin, but personally I think I understand OP ply and seriously I have studied this method and sincerely it is usually a bad strategy for me, reason been that the bitcoin market is heavily unpredictable in my opinion and you can’t predict the future.

Now let me make an example, if you sell bitcoin while it was pumping say at $100k like we are undergoing now with intention to buy back in the next dump for more bitcoin portion but rather the market then continues moving from this point till a much higher price level. With bitcoin price been unpredictable there is tendency that the lowest price we would see is bitcoin not coming back to $100k again so buying back again would now be in loss.

Selling a portion could be lessen the risk but one thing I usually say is when taking profit, simply take profit after a long term and not risking selling high to buy low immediately like you stated the market might caught you out

[The Cryptovator]

The reason why Bitcoin pumps hard is institutional investment. The Bitcoin market is free for entry anytime and for anyone. If retail holders sell their holdings and institutions keep buying, then who can prevent them? Instead, retail investors could accumulate as well; no one was preventing them. The main problem is when Bitcoin starts dumping, then retail sellers panic and sell, but institutional investors consider it as accumulation opportunities.

On the other hand, retail investors' selling targets and institutional investors' targets won't be the same anyway. Retails just sell their holdings when they have a good profit. But till now, no major sells noticed from institutional investors. Mindset is different; when the market is open, anyone can enter. There is no way to prevent institutions from investing in Bitcoin.

[tread93]

~snip~

This chart is pretty sick! Thanks for sharing. I feel like the amount of individual bitcoin being owned is definitely a major plus, right? I mean more power the the people right? Instead of it slowly being accumulated by other major players that have the ability to move the markets i mean is that what you're referring tk with the Atticus finch comment?

What I meant was that there's an ongoing shift in Bitcoin ownership from retail to institutions, as pointed out by OP's quotation, and it's not good. However, at least at this point in time, "It's not time to worry yet." It's because the share of individual Bitcoin owners remains far larger than the shares of governments and businesses and ETFs and whatnot.

However, it's not something that should be brushed off. It's a growing reality. Before we know it, Bitcoin is already hoarded by governments and institutions. And we won't be happy with it. Having said this, I fully support OP's call for individuals like us to HODL, even buy more if we have extra funds. We can't stop them, but at least we can force them to make an offer some of us can't refuse.

Let's try to compare the numbers to get the bigger picture.





In just a matter of less than 5 months, individual holdings have decreased from 69.4% to 68.2%. On the other hand, Bitcoin owned by businesses increased from 4.4% to 5.1%, Bitcoin owned by Funds and ETFs from 6.1% to 6.4%, and Bitcoin owned by governments from 1.4% to 1.5%.

Which means there is indeed a shift happening. Although in relatively small amounts, if this goes on, and we know how institutional and government adoption is growing right now, it might only take a few years before individuals only own less than 50% of the supply.

Wow you're eight and losing another 20% share to other areas besides individual investing would shift the majority of owned bitcoin over to institutional. Definitely HODL and get as much as you can!

[Joy- maker]

There's no problem with selling Bitcoin if you have already made a profit. Why not sell them and wait again when the price drops to a much cheaper price?

anybody who sells all his or her portion of bitcoin at early stage of accumulation all because he or she  have made profit, and then wait to buy back cheap when bitcoin dip that person is not a good investor, he or she doesn't know the wort and the  value of bitcoin, because if you understand bitcoin you won't sell in a hurry rather you buy more bitcoin's with any of this strategy that is best suitable for you, wether buying the dip, DCA or lump-sum and hold, and holding should be for long term 5 to 10 or more, in other for you to make good profit, because this mindset of selling your bitcoin at early stage all because you have made profit and waiting to buy back cheap when bitcoin dip is the mindset of a trade and not the one of an investor who knows the value of bitcoin, and buying back cheap maybe Very difficult because bitcoin price may not dip to the price you are desiring to back which you maybe still end up buying back at higher price that is not your desire price.

[fikrett]

Wow you're eight and losing another 20% share to other areas besides individual investing would shift the majority of owned bitcoin over to institutional. Definitely HODL and get as much as you can!

As it was said - we cannot make bigger entities not enter BTC and buy more of it, but we can surely contribute to buying more ourselves, because there is not much we can do otherwise.

[Free Market Capitalist]

And what will they do with bitcoin, which they will never sell?

That is what the institutions are doing, even the president of the USA himself has said: “you never sell your bitcoin”.

The only thing that comes to mind is issuing securities secured by bitcoin to attract investment. That is, indirect earnings on bitcoin.

As I said before, partial sales are OK, as the options for an individual are more limited, and for the most optimal one which would be borrow against it you need a large capital, so you do not pledge more than 10% of your holdings to borrow against it.

Any market is unfair in principle.

I have a complete opposite view.

One way or another, a narrow circle of people will always concentrate the majority of assets. That's exactly what happened with bitcoin. Isn't it?

That has not happened until recently. MSTR started buying bitcoin in 2020, being a very small player then. People have had 15 years to buy bitcoin, and it still has many years ahead of it.

Til the end?

The hold can't last forever. One day, sooner or later, everyone will sell and at that moment, someone else will buy. It is possible that the buyer will be an institutional investor.

Well, not just bitcoin, I am clear that I am not going to sell any of my financial assets, ever. There may be some exceptions, such as if I have shares in a company I no longer trust and the price falls. In that case I would sell the shares and others that I am in profit to pay 0 taxes.

But it's good that many people only think about selling at some point, so you give money to the state and they won't think about putting an unrealized capital gains tax on us.

[melinoe]

The reason why Bitcoin pumps hard is institutional investment. The Bitcoin market is free for entry anytime and for anyone. If retail holders sell their holdings and institutions keep buying, then who can prevent them? Instead, retail investors could accumulate as well; no one was preventing them. The main problem is when Bitcoin starts dumping, then retail sellers panic and sell, but institutional investors consider it as accumulation opportunities.

On the other hand, retail investors' selling targets and institutional investors' targets won't be the same anyway. Retails just sell their holdings when they have a good profit. But till now, no major sells noticed from institutional investors. Mindset is different; when the market is open, anyone can enter. There is no way to prevent institutions from investing in Bitcoin.

We can only continue to work on our own bags accordingly, that's true, in my opinion.

And this was destined to happen sooner or later, because the market, as you said, is not a door with a lock - it's rather a gate that anybody passes if he wants to.