Bitcoin price drop but institutional investors on Bakkt are buying like crazy!

[Kprawn]

Source : https://www.reddit.com/r/Bitcoin/comments/e0f545/new_alltimehigh_ath_on_bakkt_2728_contracts_2030m/

So you think this is really a massive Bitcoin dump going on? Guess again, the big boys are running in the opposite direction.    We panic so quickly,

but we also forget very quickly where we were in January 2019. ($3000)

This is the time to buy my friends and if you already own some bitcoins to hoard them. Do not fall for the Chinese fud that are being spread in the

mass media and on social media platforms, because it is just smoke & mirrors.  

[1Referee]

The volume reported by bakkt consists of both longs and shorts. I however do not know what the exact ratio is between the two since they do not publish it publicly (this very likely requires you to have an institutional account at ICE). Considering that institutions are technical buyers/sellers, it's safe to say that there are more shorts than longs right now with how ugly the charts look.

The advantage of bakkt over cme is that you can't short more than the number of coins bakkt has in its reserves. At cme the only limit is what you can afford to pay for a short. Very bad.

[Lucius]

Although some believe that things happen by accident, when it comes to profit and big money nothing happens by accident. Those on the top use all available methods to profit, and as we can see, they are doing very well.

Panic sale of weak hands, people acting like the end of the world has come, new accounts spreading FUD, Bitcoin has been declared dead once again, the bubble has burst... In the meantime, those who are aware of the opportunity are buying cheaply and there is no doubt that they will sell at a much higher price when the time comes.

The speculations say Bakkt bought about 100,000 Bitcoins (which was supposedly the reason for the pump to $14k), is there any public information on how much has been spent so far?

[tsaroz]

If you want to make a profit, you should buy on a decreased market and sell on an increased market. If the market keeps on decreasing, you should buy more to decrease your average cost. Bitcoin is at one of the lowest price in last 3 months and we can easily predict the price would jump up. Whales investors could easily profit on short price fluctuations.

[panganib999]

This is the time to buy my friends and if you already own some bitcoins to hoard them. Do not fall for the Chinese fud that are being spread in the

mass media and on social media platforms, because it is just smoke & mirrors.  

Have been already enlightened with the Chinese way of FUD. Announcement of bans have been ongoing for a long time now and yet nothing has happened as of yet. Although the timing of the news and the drop are quite scary, it is possibly in the end FUD that is coordinated by the Chinese. Plus, without BTC even reaching the lowest it could go possible, investing in BTC is still quite worthwhile and would last as long as it could possibly go for.

[aardvark15]

I’ve said this in a previous topic. When people are panic selling, the big boys are waiting until the best possible low price to buy. They are just waiting for this kind of situation.

[exstasie]

The advantage of bakkt over cme is that you can't short more than the number of coins bakkt has in its reserves. At cme the only limit is what you can afford to pay for a short. Very bad.

Why is it bad, exactly?

Cash settlement means the market operates like any CFD instrument, so CME shorts are limited by bid side liquidity. They can't short more than buyers are willing to long. It's functionally no different than the Bitmex perpetual swap in that way.

CME (or Bitmex) can't be used to push prices around so it doesn't matter how many shorts or longs pile on. There is no mechanism to make the spot markets follow them; they won't. However, large traders can take positions on CME or Bitmex and then pump/dump on spot exchanges, and I'm sure that's exactly what is happening.

[sikke]

I would not jump to your conclusions solely looking at the graphs, because volume at a derivatives exchange can be almost nothing in terms of indicating the positions that they are taking out, and whether or not they have long term vested interest.

Besides, the increase in volume is almost negligible still when compared to major exchanges which have billions in turnover each day.

But I actually wouldn't be surprised if institutional investors are loading up right now, just because of the fact that halving is not far away and prices are undervalued significantly. DCA is the way to go for individual investors too.

[1Referee]

Why is it bad, exactly?

It's bad because it reduces the demand for spot Bitcoin. Pretty self explanatory, right?

CME (or Bitmex) can't be used to push prices around so it doesn't matter how many shorts or longs pile on. There is no mechanism to make the spot markets follow them; they won't. However, large traders can take positions on CME or Bitmex and then pump/dump on spot exchanges, and I'm sure that's exactly what is happening.

There have been plenty of instances where bots do replicate the movements of CME and Bitmex. Perhaps not to the exact dollar, but close enough is close enough. It makes sense as well because those trading at CME are most likely institutional players (which is where most of the demand came from this year), and the volumes are well above that what spot exchanges generate.

[BitHodler]

The speculations say Bakkt bought about 100,000 Bitcoins (which was supposedly the reason for the pump to $14k), is there any public information on how much has been spent so far?

Unfunded speculation. Similarly, there is a lot of unfunded speculation about Bakkt not having any coins in storage. I seriously wonder if anyone has tried to actually withdraw the "physically" delivered Bitcoins.

If Bakkt actually bought 100k BTC they wouldn't do that through exchanges but through private OTC deals (which they had a full year in time for), and these deals don't have an impact on the price. I'm still not impressed by Bakkt.

[samcrypto]

I’ve said this in a previous topic. When people are panic selling, the big boys are waiting until the best possible low price to buy. They are just waiting for this kind of situation.

This is why panicking is not good because whales are just waiting at the bottom and if they did that, the easy pump will happen again. We have to think like them, buy when its cheap and don’t sold while your bitcoin is at loss. The potential pump with bitcoin is still here, it can’t be stop so have patience because the good news will come again. Its pretty huge volume, its good that BAKKT slowly gaining the trust of the public.

[exstasie]

Why is it bad, exactly?

It's bad because it reduces the demand for spot Bitcoin. Pretty self explanatory, right?

No. How does the CME market do that?

CME (or Bitmex) can't be used to push prices around so it doesn't matter how many shorts or longs pile on. There is no mechanism to make the spot markets follow them; they won't. However, large traders can take positions on CME or Bitmex and then pump/dump on spot exchanges, and I'm sure that's exactly what is happening.

There have been plenty of instances where bots do replicate the movements of CME and Bitmex. Perhaps not to the exact dollar, but close enough is close enough.

I've never seen any examples of that, let alone proof that there is a statistical correlation. Logically it just doesn't make sense since there is no arbitrage pressure to drive prices towards CME or Bitmex prices. There is arbitrage pressure to drive CME and Bitmex prices towards spot, since their index/reference rate is based on constituent spot exchange prices.

In other words, CME traders very much care what spot exchanges say the price is. The spot markets have absolutely no reason to care what CME does though. Volume doesn't matter in this respect because no BTC is being traded on CME.

It makes sense as well because those trading at CME are most likely institutional players (which is where most of the demand came from this year), and the volumes are well above that what spot exchanges generate.

That supports the theory that institutions take positions on CME and then push spot exchanges on low volume. That makes a lot more sense than bots on spot exchanges following CME.

[Ayiranorea]

At least now the the investment is increasing more and more which was expected to happen by the launch of Bakkt. Bitcoin price drop is quite big over the past few days. Today there is strong growth in the market, maybe the buying potential have increased based on the drop. These days panic about the market fluctuations were very low which too seems to be a reason for institutional investors showing interest over Bakkt.

[ecnalubma]

Real investors are juicing from the fear of weak holders. Somehow Chinese FUD’s are effective way to shake the market and its an obvious strategy of used by manipulators in previous years, I think investors should become more rational thinkers to be not easily victim by this repeating manipulation strategy.

[Wexnident]

At least now the the investment is increasing more and more which was expected to happen by the launch of Bakkt. Bitcoin price drop is quite big over the past few days. Today there is strong growth in the market, maybe the buying potential have increased based on the drop. These days panic about the market fluctuations were very low which too seems to be a reason for institutional investors showing interest over Bakkt.

I guess we can hold on to Bakkt to save the day and stop the bearish season? It is a bit too early to tell, I know. But with Bakkt's recent achievements of another ATH with traded volumes in their site, it is a positive sign for most of us out here. Although it could be just a short-lived occurrence, Bakkt with it promising to deliver its results in the span of a year seems more and more likely now. Instead of showing it in one full bomb, they instead spread it around and wait for some time before *BAM*, massive fireworks for everyone to see.

[piebeyb]

lucky for those who still have large funds to take over bitcoin from the hands of people who are weak and easy to panic, I also often say this stay away from the mass media because they have a real FUD, but I can't hold those who are starting to feel panicked I hope they can buy it below the price they sell it, I already suspected this about this 

[Beparanf]

Many will sure to take advantage on this week's dump. I'm also Acqua ring some BTC but its not enough to make the market move unlike those whales that can manipulate the market. Good are those in bakkt that can get this time to potentially buy more they wanted in a lower price.

[pooya87]

since that number is the "volume" not the "buy volume" alone, we can't make that conclusion that it is all buys. but at the same time the spike shows more activity so even if only a potion of it is "buys" then it still is indicating an increase in purchases. and logically that makes sense too since every time the price is manipulated and goes down to unrealistic lows there is some big whales who are shorting it during the drop and buying lots of bitcoin as the drop comes to an end which is the case the closer we get to the end of the drop and the panic sells.

[bbc.reporter]

However, some hedge funds are shorting CME bitcoin futures to hedge out risk from their exposure on bitcoins. This is the game they play similar to the punters of sportsbetting on getting tips and news from each other and use it.

They do not care about the cryptospace.


Some hedge funders out there appear to have made a stronger bet on the short side of the CME bitcoin futures market over the past week, data from the Commodities Futures Trading Commission shows.

As per a research report by The Block's Ryan Todd, hedge funds were overwhelmingly short during the week of November 12th compared to the sell-side, asset managers, and other groups. Specifically, net short positioning (Short OI - Long OI) among hedge funds that trade the CME bitcoin product was at an all time high over the last two weeks of COT report prints.

To be sure, the data only shows net positioning of CME bitcoin futures; funds could still be exposed to the underlying spot on the long side and using bitcoin futures to hedge out risk.

Read in full https://www.theblockcrypto.com/linked/48268/hedge-funds-were-short-bitcoin-going-into-this-downturn-cftc-reports-show

[bassbity]

lucky for those who still have large funds to take over bitcoin from the hands of people who are weak and easy to panic, I also often say this stay away from the mass media because they have a real FUD, but I can't hold those who are starting to feel panicked I hope they can buy it below the price they sell it, I already suspected this about this 

The panic person will sell all the assets he has and not think long about his future, I also still save some funds to buy at prices like this I will not be influenced by any FUD news this is an opportunity for us to start buying at a price that is it's cheaper that the whale wants too.