Institutional Demand for Bitcoin and Crypto Resurges

[Goozzi]

Reports are increasingly indicating that bitcoin’s recent drop of 70% from its December record highs of nearly $20,000 has spurred a renewed interest in the BTC and cryptocurrency markets from institutional investors.

Read more: https://news.bitcoin.com/institutional-demand-bitcoin-crypto-resurges/

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[Harlot]

Of course these investment companies are always looking for the value of their money. With Bitcoin more than 60% off it current all time high this would be considered as a discounted price. On the other thought this financial institutions don't really need a good entry point to begin with, with the amount of capital they have they could even push the price of Bitcoin from 20,000$ to 25,000$, there money always don't lay sitting in long positions. Who know maybe they are playing Bitcoin right now.

[Lieldoryn]

Of course these investment companies are always looking for the value of their money. With Bitcoin more than 60% off it current all time high this would be considered as a discounted price. On the other thought this financial institutions don't really need a good entry point to begin with, with the amount of capital they have they could even push the price of Bitcoin from 20,000$ to 25,000$, there money always don't lay sitting in long positions. Who know maybe they are playing Bitcoin right now.

I agree with you. People can start using bitcoins at any time regardless of the price. Bitcoin has great prospects and its price is still very far from the maximum. But I want to remind you that the income from rising prices will not always be. The main purpose of bitcoin is to build an independent society and economy. therefore, I will use bitcoins even when the price reaches the maximum.

[buwaytress]

I'm not sure there's really a surge in demand from institutional investors. We're hearing about them all now, for sure, but read deeper and you realise that they already entered the market a while ago - last year most likely, through their hedge fund managers and associated funds. They're probably the ones who largely made Bitcoin the crazy "investment asset" that it was end of last year. They probably also shorted it all to lock in profits, causing the recent slump. And they're probably making public their "new" investments to time their dip buys nicely for more profit.

Think about it. These are guys who pay other guys to tell them what's on the horizon. They'd have heard of Bitcoin long before its 4k mark, and they're not the kind to buy now when everyone else has had their fill.

[aoluain]

Looks like institutional investors believe they are going to see a big return
for their investment. Looks like they are hoping for at least a +60% return.

Im happy to see the positive belief 

[botany]

I'm not sure there's really a surge in demand from institutional investors. We're hearing about them all now, for sure, but read deeper and you realise that they already entered the market a while ago - last year most likely, through their hedge fund managers and associated funds. They're probably the ones who largely made Bitcoin the crazy "investment asset" that it was end of last year. They probably also shorted it all to lock in profits, causing the recent slump. And they're probably making public their "new" investments to time their dip buys nicely for more profit.

Think about it. These are guys who pay other guys to tell them what's on the horizon. They'd have heard of Bitcoin long before its 4k mark, and they're not the kind to buy now when everyone else has had their fill.

True. Most institutional investors would have limited appetite for cryptocurrencies, unless it is a crypto-specific fund. What would really lead to an increase in demand is regulatory changes which makes Bitcoin palatable to investors. There is only so much that price drops can do, especially when nobody can agree on a "fair value" for Bitcoin.

[abelmon66]

If there is a large institution interested in bitcoin it is very good and will definitely have a good impact or rise again on the bitcoin at this time and in the future.

[ruletheworld]

I'm not sure there's really a surge in demand from institutional investors. We're hearing about them all now, for sure, but read deeper and you realise that they already entered the market a while ago - last year most likely, through their hedge fund managers and associated funds. They're probably the ones who largely made Bitcoin the crazy "investment asset" that it was end of last year. They probably also shorted it all to lock in profits, causing the recent slump. And they're probably making public their "new" investments to time their dip buys nicely for more profit.

Think about it. These are guys who pay other guys to tell them what's on the horizon. They'd have heard of Bitcoin long before its 4k mark, and they're not the kind to buy now when everyone else has had their fill.

It's not as straightforward though. What you describe may be true for family offices, for example, but isn't true for institutional investors like say pension funds. They have very strict mandates on what they are allowed to invest in, and opening up a new asset class with questionable custody solutions is definitely not an easy sell.

[Loveboard]

I read the article. He said that they bought 200k btc... that's ... literally interest by institutional investors.

I think that it's actually a good investment technique to buy in after you see a market go bullish, rather than be bearish. So the institutions are just entering the game now that they see there's an ROI to be made.

It sounds like a really bad game plan, but they probably looked at BTC history and figured that a pump is a good way to invest.

[Baofeng]

Reports are increasingly indicating that bitcoin’s recent drop of 70% from its December record highs of nearly $20,000 has spurred a renewed interest in the BTC and cryptocurrency markets from institutional investors.

Read more: https://news.bitcoin.com/institutional-demand-bitcoin-crypto-resurges/

We have witnessed this during the December peak, when bitcoin future contracts offering where started by institutional investors CBoE and CME and short term the effect is really good as the market goes into a frenzy and hitting all-time-high. What bothers me though is the long term impact as we plummet so hard even bottoming at $6K.

So I'm not totally sold on them joining the picture. I hope though that I'm wrong and this time whatever institutional investors entering, will really brought a good and lasting effect to the ecosystem.

[Coffee135]

I am opposed to the fact that a large number of coins are concentrated in one place. This lays a mine of delayed action under the entire market. We have seen for 4 months of this year how it works. Whales can easily reduce and increase the price. I'm not against volatility but the big players can increase the price decline period and it will be bad for everyone. I would like more if 200k bitcoins bought 200k people.

[jseverson]

“Regulators are not banning the development of cryptocurrencies, but are trying to better regulate the market, which should help the industry mature,” Mr. Lai said. “If the regulatory stance gets clearer, large funds will be more assured and willing to commit significant capital.”

Only if the regulations are fair, of course. If it gets to a point where putting money in crypto is more trouble than it's worth, then why would anyone bother? That's the part where it gets tricky.

But yeah, I have mixed feelings about institutional investors actually entering the market. They're going to be in it for the money, not the technology, so it will only contribute to volatility as they play with their money, and may actually hurt actual adoption in the long run.

[xdrpx]

Most institutional investers are seeking to make marginal gains from any derivative that has had a history of previously attaining high prices multiple times, with the hopes that such assets once again reaches their ATH in order to reap the benefits. Recently if you may have noticed the stock prices in NYSE fell by a marginal percentage which later displayed a high percentage investment into Bitcoins and other cryptocurrencies which was signified by a price rise in the altcoins segment. This is usually a rosy picture which indicates that such investors are hegding their funds into cryptocurrencies in the event of a stock turnoil.

[buwaytress]

I'm not sure there's really a surge in demand from institutional investors. We're hearing about them all now, for sure, but read deeper and you realise that they already entered the market a while ago - last year most likely, through their hedge fund managers and associated funds. They're probably the ones who largely made Bitcoin the crazy "investment asset" that it was end of last year. They probably also shorted it all to lock in profits, causing the recent slump. And they're probably making public their "new" investments to time their dip buys nicely for more profit.

Think about it. These are guys who pay other guys to tell them what's on the horizon. They'd have heard of Bitcoin long before its 4k mark, and they're not the kind to buy now when everyone else has had their fill.

It's not as straightforward though. What you describe may be true for family offices, for example, but isn't true for institutional investors like say pension funds. They have very strict mandates on what they are allowed to invest in, and opening up a new asset class with questionable custody solutions is definitely not an easy sell.

I do get that it's a sweeping statement, which is always unfair to the exception. But take a look at the extremely guarded private equity (PE) funds that also have very select clients, and usually very conservative ones, all who require signing off on investments. Some big PE firms were actually dipping into crypto even in 2016 and by early 2017 were even launching their own ICOs already - not only opening up new asset classes in their portfolio but actually expanding to grab more of the market beyond the recognsed coins of Bitcoin and the top 5. Of course, there will always be those who cannot ever be sold the idea, but with almost every recession-free asset slipping... and Bitcoin moving up every year, hard for people to ignore maths.

[SUDARMONO]

It is true that with such a large decline it will give more chances to more buckets with a chance of great results or profits.

[reality18]

Reports are increasingly indicating that bitcoin’s recent drop of 70% from its December record highs of nearly $20,000 has spurred a renewed interest in the BTC and cryptocurrency markets from institutional investors.

Read more: https://news.bitcoin.com/institutional-demand-bitcoin-crypto-resurges/

Everyone wants a fertile land and now the institutions have seen that in Bitcoin. The rise in Bitcoin price currently have revitalized the interest of many investors as they see the big BTC bull is about taking another leap. Looking at the statements of analyst like Olga Feldmeier, the chief executive officer at Smart Valor, it seems the investors have waited long for this moment.

Olga Feldmeier, the chief executive officer at Smart Valor, predicted that a strong break above the $8,000 USD area is having the potential to comprise “the ignition for the next bull phase, for which a lot of investors were waiting for a long time and will be happy to support now.”

[ruletheworld]

I am opposed to the fact that a large number of coins are concentrated in one place. This lays a mine of delayed action under the entire market. We have seen for 4 months of this year how it works. Whales can easily reduce and increase the price. I'm not against volatility but the big players can increase the price decline period and it will be bad for everyone. I would like more if 200k bitcoins bought 200k people.

That's just the nature of these markets though. Wealth will never be distributed in such an equitable manner. It is also not right to think that anyone with a lot of Bitcoin would be out there trying to manipulate the markets (think the Winklevoss twins for example).

[Bervelukan]

Such a sharp decline could be a great institution opportunity to buy at a bargain price by holding back some time to get a great price or a high price.

[St4yInTh3D4rk]

I am opposed to the fact that a large number of coins are concentrated in one place. This lays a mine of delayed action under the entire market. We have seen for 4 months of this year how it works. Whales can easily reduce and increase the price. I'm not against volatility but the big players can increase the price decline period and it will be bad for everyone. I would like more if 200k bitcoins bought 200k people.

That's just the nature of these markets though. Wealth will never be distributed in such an equitable manner. It is also not right to think that anyone with a lot of Bitcoin would be out there trying to manipulate the markets (think the Winklevoss twins for example).

But the reality is they can manipulate the market prices of they have large number of bitcoins in their hand and it is always happening and we call them as whales,but now that concentration getting decreaseing due to more number of new investors coming to invest so they will buy from the whales one day the whales might disappear but whey have made good amount of profits.

[Kemarit]

“Regulators are not banning the development of cryptocurrencies, but are trying to better regulate the market, which should help the industry mature,” Mr. Lai said. “If the regulatory stance gets clearer, large funds will be more assured and willing to commit significant capital.”

Only if the regulations are fair, of course. If it gets to a point where putting money in crypto is more trouble than it's worth, then why would anyone bother? That's the part where it gets tricky.

But yeah, I have mixed feelings about institutional investors actually entering the market. They're going to be in it for the money, not the technology, so it will only contribute to volatility as they play with their money, and may actually hurt actual adoption in the long run.

Exactly what my thoughts are. Institutional investors are in just for the money that might significantly affected the prices in a negative way. We have seen the impact in December when suddenly a surge of price pushes the price to a bubble. And after that, a lot of (newbies) investors got burned. so its a little bit tricky Plus I can also see that they can play a big role in manipulation the price. Its really exciting to here institutional investors really recognizing crypto but I still a bit of skeptic as to what they real intentions because at the end of the day, its us that are going to suffer eventually.