[2019-04-10] Institutional Bitcoin Trading Volume Grows For 4 Consecutive Months

[tyz]

Institutional Bitcoin Trading Volume Grows For 4 Consecutive Months

Popular cryptocurrency data outlet Diar reports that institutional Bitcoin trading volumes have moved into growth for the 4th consecutive month. According to the report, they are hitting new highs against US-based exchanges as a percentage of the total trading volume.

https://bitcoinist.com/institutional-bitcoin-trading-volume-grows-for-4-consecutive-months/

[buwaytress]

Look at the short history of that chart. The last time it reached 4 consecutive months, it dipped, before taking over supposedly 25% of volume against exchanges, and then the decline from which it's now climbing. Nowhere to go but up if it's so far down, kind of like how meaningful/meaningless 6 consecutive weeks of Bitcoin price increase means to interest.

It's a sign sure, but almost as useful as Bitcoin dominance, IMO. Also, a fifth of trading volume is institutional? Doesn't that seem suspect?

[BitHodler]

It's good to see how the volumes are picking up, but it's not indicative of a trend reversal at all, and as long as that isn't the case, I'll prefer to remain conservative and be open minded enough to acknowledge the possibility of another crash.

Only OTC desks know how much actual demand there is from institutional entities, so it would be a very welcome bit of information would they ever publicly share it. It doesn't have to be specific names, but more the global numbers.

[Slow death]

no offense, I would like to know how much bitcoins these institutional investors buy and how often they buy. It would be very good to have this data, because in my opinion I am not seeing any big impact from these institutional investors. There are a lot of millionaires, but I do not hear that someone millionaire has taken $10 million of their fortune to buy bitcoin, but they buy gold... I think we still need to make people aware of the advantage of having bitcoin.

[livingfree]

They are coming in right now as expected.

We truly are in the accumulation period and these institutions know what they are doing. But I'll go with the sentiment of others that we shouldn't celebrate this early. I wouldn't say a crash might occur but just smaller than that to correct the market and play the volume once again. Today, bitcoin surged from $5,200 to $5,400 and this might be the effect of it.

[1Referee]

It's funny how people on social media are so easy to shift from being anti institutions, to now being bullish where people almost celebrate the mad volumes the CME is generating, lol. It's not even that long ago where largely the same people were blaming the CME for crashing the price, and now suddenly it's all different, yeah right.  

I didn't believe the futures would play a role at all when it comes to price disovery, but it seems that the CME has actually some weight. In dollar equivalent, the CME from time to time generates more volume than Coinbase Pro, Bitstamp and Kraken combined. The parties trading here aren't your average retail investors, but actual institutions betting on the price.

This is actually the perfect time for Bakkt to launch with how the market looks much better than some months ago. Healthier market = more demand, and these futures are actually coin backed, and not entirely cash settles just like the ones over at CME.

[timerland]

Declining Price Didn’t Affect Institutional Demand

It's interesting that in the article they stated that, because a lot of investors seemed to panic when the bear market hit and they thought that institutions were going to step out after the huge drop.

But as history has told us many times, the smart money enters the market in precisely zones where prices seem to be down and general market sentiment is down, because they can see that bitcoin has not changed fundamentally, all that has shifted was the uncertainty in the market at the time.

How much this stat actually means though is debatable. Just because institutions invest increasingly doesn't necessarily translate to positive things for the market, especially when you factor in things such as potential manipulation in the market in the future. Though, this overall demand from institutional investors could potentially fuel a bigger bull market in the future, even if I'm not completely sold on the idea that they will improve the fundamentals.

[tyz]

They are coming in right now as expected.

We truly are in the accumulation period and these institutions know what they are doing. But I'll go with the sentiment of others that we shouldn't celebrate this early. I wouldn't say a crash might occur but just smaller than that to correct the market and play the volume once again. Today, bitcoin surged from $5,200 to $5,400 and this might be the effect of it.

I think they're also increasingly investing in cryptos because they're running out of alternatives. Institutional investors sit on a pile of money and don't really know what to do with it. And the global economic upswing will continue to ensure that money stays cheap or becomes even cheaper through more money printing, which increases the problem for institutional investors.