Bitcoin price due to retail investors?

[Don Pedro Dinero]

In this video:

https://www.youtube.com/watch?v=ZUjEuifWIV4

The author points out that bitcoin’s price rise is mainly due to retail investors getting into the market without caring about the fundamentals of the asset they are buying. They just buy because the asset has risen, and they believe it will keep going, thus making money for them.

This is especially easy nowadays where the masses can invest low amounts easily. He compares this recent rise with the bubble in Shanghai Composite back in 2015. This can lead to strong pullbacks when institutional investors start to sell but he emphasizes that he is not trying to create FUD.

I’ve found it quite interesting because we usually talk about the big whales and the effect they can have but we don’t talk so much about all the small retail investors buying almost by faith and how they can affect the price.

What do you think?

[Hydrogen]

I’ve found it quite interesting because we usually talk about the big whales and the effect they can have but we don’t talk so much about all the small retail investors buying almost by faith and how they can affect the price.

This is true and a very good point. There are parallels which show the power of small, independent, buyers. Many states in the USA no longer offer tax credits for residents installing solar panels on their homes. There is an overwhelming number of solar panels equipped on residential units in some states, that electrical grids can not handle the load & must pay neighboring states to take their excess power.

Commonly utilized economic theory revolves around "interest rates", policies which mainly affect one percenters, the wealthy & elites. There aren't many economic or financial policies marketed specifically for the remaining 99% of the population. This could create a vacuum whereby the vast majority of our population are neglected.

Bitcoin could be one of few investment vehicles in the entire world that is marketed towards average, ordinary, people. The value or net effect of that should not be underestimated imo.

[harizen]

I’ve found it quite interesting because we usually talk about the big whales and the effect they can have but we don’t talk so much about all the small retail investors buying almost by faith and how they can affect the price.

No it's not the talks for today everytime there is a massive bitcoin price increase, even the time we successfully breached 4 digits level since it was last happened. Big whales are no doubt an influential but with the current status of bitcoin, no way it just only big whales. I have a post related to this over a year ago about bitcoin price is not always triggered by big whales around. I think the price was then was less than $4,000 if I remembered it correctly.

Coins are much disributed now to different persons globally and growing much more as we progress. Big whales can create and triggered a panic but the output of it will depend on the community.

[aardvark15]

In this video:

https://www.youtube.com/watch?v=ZUjEuifWIV4

The author points out that bitcoin’s price rise is mainly due to retail investors getting into the market without caring about the fundamentals of the asset they are buying. They just buy because the asset has risen, and they believe it will keep going, thus making money for them.

This is especially easy nowadays where the masses can invest low amounts easily. He compares this recent rise with the bubble in Shanghai Composite back in 2015. This can lead to strong pullbacks when institutional investors start to sell but he emphasizes that he is not trying to create FUD.

I’ve found it quite interesting because we usually talk about the big whales and the effect they can have but we don’t talk so much about all the small retail investors buying almost by faith and how they can affect the price.

What do you think?

I’m sure there are investors that don’t understand cryptocurrencies but are buying because they don’t want to miss out on making money. That may be driving the price up too quickly, but I think there is room for the price of Bitcoin and some of the altcoins to grow. One thing that I get skeptical about is when all cryptocurrencies seem to rise at the same time, it makes you wonder where all this money is coming from. I think we need to remember that these are worldwide investments and there is a lot of money coming in from China, Japan, and South Korea where cryptocurrencies are probably more popular than they are in Europe and America.

[Coffee135]

If a lot of private investors will buy bitcoin then the price will slowly rise up. We see that the behavior of bitcoin is absolutely not like that. Surges up and then down suggests that they have an artificial origin. I am sure that this is the work of whales. That they destabilisateur market and every year increases the concentration of bitcoins in the same hands.

[palle11]

I quite know that the price of bitcoin is being bullish this way because factors are responsible for this growth but I can not support or say it is as a result of retail investors because there is no way to actually quantify such.

[jaysabi]

In this video:

https://www.youtube.com/watch?v=ZUjEuifWIV4

The author points out that bitcoin’s price rise is mainly due to retail investors getting into the market without caring about the fundamentals of the asset they are buying. They just buy because the asset has risen, and they believe it will keep going, thus making money for them.

This is especially easy nowadays where the masses can invest low amounts easily. He compares this recent rise with the bubble in Shanghai Composite back in 2015. This can lead to strong pullbacks when institutional investors start to sell but he emphasizes that he is not trying to create FUD.

I’ve found it quite interesting because we usually talk about the big whales and the effect they can have but we don’t talk so much about all the small retail investors buying almost by faith and how they can affect the price.

What do you think?

What fundamentals? Bitcoin is a commodity, and I'm unfamiliar with any fundamentals for a commodity other than supply and demand. It's not like a business where you can analyze the valuation based on the business's ability to generate profit or sales, it's simply an asset that doesn't generate any income. As such, it's hard to argue that any person buying or selling bitcoin is doing so based on the fundamentals, because supply is perfectly transparent, and demand is the only real unknown variable. One thing for certain though, it seems demand is highly susceptible to herd mentality, and that it is in a sort of mania phase. That's not good for the sustainability of this price level.

[Don Pedro Dinero]

What fundamentals? Bitcoin is a commodity, and I'm unfamiliar with any fundamentals for a commodity other than supply and demand. It's not like a business where you can analyze the valuation based on the business's ability to generate profit or sales, it's simply an asset that doesn't generate any income. As such, it's hard to argue that any person buying or selling bitcoin is doing so based on the fundamentals, because supply is perfectly transparent, and demand is the only real unknown variable. One thing for certain though, it seems demand is highly susceptible to herd mentality, and that it is in a sort of mania phase. That's not good for the sustainability of this price level.

He is talking about fundamentals because he is drawing a comparison between bitcoin and other types of assets like stocks. Bitcoin fundamentals are different from stocks ones but as I understand him, what he means is that there are investors in bitcoin who know about its origin, its underlying technology, its open-source code, its 21 million limit, the ability to become a store of value or a cash electronic peer-to-peer system, etc.

And, on the other hand, there are those kinds of investors that don’t know anything about what I’ve just pointed out, and just keep buying because they believe bitcoin price will keep rising and will make them rich. We can see examples of these kind of investors in this same forum.

[jksmds]

A very good point, but one think to be kept in mind that for every new concept, initial adoption is without knowledge.
But when people join the game, they learn, gain better understanding, and eventually start using their understanding.

So it is true that people are joining it, thinking it is commodity, but they are people, they will learn it, some slowly, some fast, but they will know it better.

[dulce dd121990]

small investors or retail investors can make also the price of the bitcoin higher. If the demand of the retail investors increases, it may increase also the  price of the bitcoin.

[aoluain]

Big time investors along with small retail investors are both groups
which are affecting the bitcoin price. It is all types of people looking
to get in on the action.

Only yesterday i was listening to a comentator talk about JP Morgans
negativity against bitcoin and then they offer bitcoin trading to their
customers requests.

I am also hearing people getting interested in it who previously would
have nothing to do with it, these would be average working class people.

[EdenHazard]

If a lot of private investors will buy bitcoin then the price will slowly rise up. We see that the behavior of bitcoin is absolutely not like that. Surges up and then down suggests that they have an artificial origin. I am sure that this is the work of whales. That they destabilisateur market and every year increases the concentration of bitcoins in the same hands.

i see the same pattern by every the end of year bitcoin price always get pumped , and in the new year then get corrected drastically , wait for that moment and it maybe true that the current situation are created by the whales .

otherwise the growth are ordinary and natural because of several newcomers .

[Reid]

Yes. That is one more good reason that is why it rose like this.
If there are group of investors, small or large ones can make an impact.
The trend can really pull people even those with savings from their banks will trade it for bitcoin.
It is like a magnet now, they are hearing so much about a lot of profit and it came to this.
Now, i believe this could happen again anytime.

[okala]

If retails traders  has created this upward price movements we have witnessed in bitcoin, it means bitcoin is not a burbles and the current price is just the beginning! Then mainstream hedge fund managers and financial institutions has not invested into bitcoin yet and bitcoin has gotten this high lift, if the mainstream investors started to invests into bitcoin then the price may be above $100,000.

[frowsiter]

The thing is there are so many way and so different sectors which might be getting into bitcoin in first place and we will never form where the maximum money is coming into the bitcoin. Its not deniable thing that bitcoin is being invested from every sector with some % of amount of real money. This will keep going on and whether its retailer or whether its small investor like an individual everyone is liable to some contribution in the bitcoin. Also, have you considered the thought of people who are using the bitcoin to hide their black and lunadary money? This could be another source form where maximum amount of money is coming. Though we know very well that its not good thing but after its pushing the bitcoin towards higher rates of market capitalism. So that why we call it anonymous currency and market as whole.

[LuanX3]

I think even if there are whales and those retail investors you call, in the event they decide to sell everything, prices will remain strong as demand will always be stronger than the supply of bitcoins. So if they do sell out, likely prices will go back down but not really that much that would make it bitcoins useless and die. I guess, it would probably disrupt bitcoins but generally it will come back up no matter what.

[neonshium]

A very good point, but one think to be kept in mind that for every new concept, initial adoption is without knowledge.
But when people join the game, they learn, gain better understanding, and eventually start using their understanding.

So it is true that people are joining it, thinking it is commodity, but they are people, they will learn it, some slowly, some fast, but they will know it better.

That’s true, retail investors can really affect the price of Bitcoin, even more than the big whales can do. There are lots of retail investors and when combined it’s probably a big number.

So I believe that’s really true. Anytime these people begins to sell off what they have, it will literally affect the price and it will go down. But I don’t think anyone is ready to sell right now, and by the way, people won’t sell at the same time. So for it to impact a heavy fall on the current rate, lots of people will have to sell off at the same time.