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Author Topic: Institutional Investors Continue to Buy Bitcoin  (Read 390 times)
fiulpro
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July 08, 2020, 01:18:54 PM
Last edit: July 08, 2020, 01:45:34 PM by fiulpro
 #21

Since March 2020, assets managed by Grayscale Bitcoin Trust have increased from US $ 1.577 billion to US $ 3,451 billion. This increase signifies increasingly intense demand from institutional investors.
The number of Grayscale Bitcoin Trust assets that reached their highest point, when the price of a Bitcoin landslide was more than 50 percent of its peak price, is a positive sign. This means that financial institutions have high confidence in BTC's long-term trends.

I do think that we should note one thing about Bitcoins :

•71% of the people know about Bitcoins in US , which means that people are aware of the fact that Bitcoins is a wonderful side investment , which also includes the big institutions and companies.
      Out of these institutions there are two kind of people :
         •_• One don't wanna share their Bitcoins investments publicly
         •~• The second ones are really open about it .

But at the end of the day , institutions do Invest in Bitcoins and other cryptocurrencies since :

 • Some countries have tax free policy on cryptocurrencies like Bitcoins
• Volatility works amazing for these institutions , plus they sometimes even hire people to keep check on their balance sheet .

But the unfortunate situation is :
  
 × It might mean there would be more whales in the society now , which could be direct in the line of market manipulation.  

Because these institutions don't care about cryptocurrencies like Bitcoins , all they care about is getting rich which could be disastrous for us .

https://news.bitcoin.com/institutional-investors-crypto-investments/

47% of the institutional Investors are okay with cryptocurrencies shows a survey.

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July 08, 2020, 11:37:34 PM
 #22

Isn't this a good signal for the development of Bitcoin? Institutional investors will certainly not easily decide to invest in Bitcoin if they are not beneficial and worthy. In this case, this explains that the world may now be increasingly accepting the existence of bitcoin, especially for promising investments. We all know that some countries are planning to ban BTC, however the longer it lasts, many more parties accept BTC.

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July 09, 2020, 12:45:37 AM
 #23

That's cool but the number of institutional BTC investors is still very low in comparison with traditional markets. Unfortunately, the crypto market is still not persuasive for such big sharks
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July 09, 2020, 03:20:48 AM
 #24

This is a good sign if institutional investors decide to continue buying Bitcoin, the amount is also very large at $ 3,451 billion. Means institutional
investors believe that Bitcoin is profitable, and I am increasingly convinced that the future of Bitcoin will be even brighter. Hopefully Bitcoin can
continue the price goes up, so small investors like me can feel the profit from Bitcoin too.

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July 09, 2020, 03:37:05 AM
 #25

Institutional investors usually buy into stocks of promising corporations when they see and upsurge in activity or potential. This is based on the fundamental value of the corporation behind the stock.

For bitcoin, this fundamental value comes from the individuals identifying its utility and importance as an investment into a p2p economy where people value their privacy and see their bitcoin holding as a hedge against inflation plus unlimited money printing. If institutions are buying, it could mean they recognize the potential of being left behind when the demand for BTC grows steadily among people, including HNI's.

Could this be the scenario that custodian facilities are preparing for by hoarding to BTC at current prices?? If enough people start recognizing this and want a piece of the pie, economies of scale will kick in and the institutions will rush to service this whole new class of customers.
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July 09, 2020, 11:48:39 AM
 #26

Institutional investors usually buy into stocks of promising corporations when they see and upsurge in activity or potential. This is based on the fundamental value of the corporation behind the stock.

For bitcoin, this fundamental value comes from the individuals identifying its utility and importance as an investment into a p2p economy where people value their privacy and see their bitcoin holding as a hedge against inflation plus unlimited money printing. If institutions are buying, it could mean they recognize the potential of being left behind when the demand for BTC grows steadily among people, including HNI's.

Could this be the scenario that custodian facilities are preparing for by hoarding to BTC at current prices?? If enough people start recognizing this and want a piece of the pie, economies of scale will kick in and the institutions will rush to service this whole new class of customers.
Bitcoin adoption has not reached to the level that can actually bring crypto industry and crypto investment to the whole generations of human over the globe. The adoption is on its rise but there are some restrictions from local governments. For whatever reasons behind, they love it, they hate it, they always want to control their local citizens and citizens' flow of capital as well as flow of taxes.

Regarding to institutional investments, they have to make lots of researches, technically, financially, and legally before decide to allocate their capital to bitcoin (at first maybe?) then crypto (at the very end). Fortunately, if they make decisions to invest, their capital will be big. Don't worry about market manipulation from them, it is the market and market has its operational rules as same as other financial markets. It is also a beauty of market. Wise investors will survive and get profits, stupid investors will get loses.

 
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July 09, 2020, 12:18:44 PM
 #27

That's cool but the number of institutional BTC investors is still very low in comparison with traditional markets. Unfortunately, the crypto market is still not persuasive for such big sharks
You're right. But, you should understand that, many hands will get into the bitcoin Market as retailers when the time come. Many of those that went into retail purchase of Bitcoin are still struggling with the pandemic and we should wait till the pandemic is over. In short time from now, many other bigger institutional investment bodies will troop into the bitcoin market and it impact  be felt generally.

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July 09, 2020, 12:36:12 PM
 #28

That's cool but the number of institutional BTC investors is still very low in comparison with traditional markets. Unfortunately, the crypto market is still not persuasive for such big sharks
You're right. But, you should understand that, many hands will get into the bitcoin Market as retailers when the time come. Many of those that went into retail purchase of Bitcoin are still struggling with the pandemic and we should wait till the pandemic is over. In short time from now, many other bigger institutional investment bodies will troop into the bitcoin market and it impact  be felt generally.

When there's money involved there are always interest that comes from the business sectors. Many until now it's not that much
but in the long run there are more institutional investors to start working inside.

knowing that they are good with how they observe and assess the flow
Institutional investors who already inside will attract more partners to
also invest inside the market.
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July 09, 2020, 01:17:43 PM
 #29

I have read about this news and AFAIK they continue to buy even the freshly mined bitcoins. Grayscale is confident in bitcoin and they have a reason why they do that and it's only circling about money and finance.

And it's not only them that are buying bitcoin. Even two years ago when JPMorgan Chase CEO - Jamie Dimon called bitcoin a fraud, later on, it's on the news that he bought the dip. Surely, there are others of them that don't want to get exposure to media and like to do it silently.
Indeed, really optimistic person thinks that Bitcoin will make another high in the future. It is quite to see how these institutional investors are now considering Bitcoin for a valuable asset. It probably THIS IS the reason why they got the interest in crypto.

Most of them are anticipating the market trend, they are business-minded and soo much to know for the future. They are speculation differently but maybe they foresaw the best position for crypto sooner.
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July 09, 2020, 02:19:31 PM
 #30

That's cool but the number of institutional BTC investors is still very low in comparison with traditional markets. Unfortunately, the crypto market is still not persuasive for such big sharks

No problem because someday, the number will increase, and many more institutional investors will come to invest in bitcoin. It is a process that still runs until now, and even though the process seems slow, that will be no problem because as long as many of us still spreads the bitcoin news on many ways, people will be curious, and they will search for more info about bitcoin. They will try to invest in bitcoin if they think that bitcoin can help them to make money.

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July 11, 2020, 11:49:04 AM
 #31

Since March 2020, assets managed by Grayscale Bitcoin Trust have increased from US $ 1.577 billion to US $ 3,451 billion. This increase signifies increasingly intense demand from institutional investors.
The number of Grayscale Bitcoin Trust assets that reached their highest point, when the price of a Bitcoin landslide was more than 50 percent of its peak price, is a positive sign. This means that financial institutions have high confidence in BTC's long-term trends.
While 2x increase is impressive, I think this should be put into some perspective to understand whether it's truly a big interest. For instance, I read on Investopedia that Grayscale was built similarly to SPDR Gold Trust. So I went on to see how much they're operating with. According to Wikipedia, they have 31.7 billion dollars worth of gold. So compared to this 3.5 billion is still quite a small number. And it's just against one of such trusts, not the whole market. My point is that while the interest is increasing, the rate of it increasing might be too low to make any difference.

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July 11, 2020, 03:09:16 PM
 #32

Institutional investors will soon to control the market and create hypes aside from whales. They are actively participating in the market and keep buying for some reason. That is too intense to see but to know they are not risking their money for anything, they'll have a plan for it things that we never know.

The growing numbers of crypto users emphasize something relevant to how the market will change in the future. In fact, we already have feel it now amidst the pandemic. Online and cashless transaction is mostly we used now, things that Bitcoin places a big role and that we think how it could possibly be more usable in the coming days. If these Institutional Investors are accumulating more Bitcoins, they are pretty anticipating the market movement and to live with Bitcoin.
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July 11, 2020, 04:08:51 PM
 #33

Today there are a lot of people are making an investment or transferring their funds into the use of the bitcoin because some of them already know that the bitcoin is next and answer to their problem about the economic crisis of the falling down of the fiat currency, and some of us are calling the bitcoin as the safe haven because it does not have a volatile market right now and most of the investors are putting their money when the market price of the coin falls down because this is a good opportunity to make a lot of profit after the market price of the coins back to normal still the market price of the bitcoin are volatile with the unexpected movement came from whales and other large investors.

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July 11, 2020, 04:17:40 PM
 #34

Why bitcoin is not pumping with such a bit amount of money from institutionals?

Because it's not enough. Always remember: for every buyer, there will be a seller. If Grayscale and other retail buyers are buying bitcoin but it's not enough to prop up the price, then it's safe to assume that there's just enough bitcoin being sold hence why the price is almost not moving. It's pretty much just balancing out.

About 900 BTC is mined every day, which adds to around 8 million USD.
Even if just 50% of miners sell (but I expect it to be more, rather 75% or more) this is 4 mill USD that has to be bought every day for the price to stay at the same level.
If Grayscale was the only one buying it would have to spend 243 million USD every month to keep us from going belo 9k USD per coin. When you think about it this way, you start being bullish, because we've been at this level for months. This means there's a huge flow of fiat money into the Bitcoin ecosystem. Or it's just USDt printer going brrrr Wink

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July 11, 2020, 05:33:39 PM
 #35

Since March 2020, assets managed by Grayscale Bitcoin Trust have increased from US $ 1.577 billion to US $ 3,451 billion. This increase signifies increasingly intense demand from institutional investors.
The number of Grayscale Bitcoin Trust assets that reached their highest point, when the price of a Bitcoin landslide was more than 50 percent of its peak price, is a positive sign. This means that financial institutions have high confidence in BTC's long-term trends.

Adoption of the blockchain technology has not met its match in terms of speed, pricing and advancement in technological utility. Although, we hear of the blockchain network, it is obviously there is high resistance in its massive adoptation and opportunities like dips gives windows for financial insitutions to dive in and faten their reserves.

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July 11, 2020, 05:47:20 PM
 #36

That's cool but the number of institutional BTC investors is still very low in comparison with traditional markets. Unfortunately, the crypto market is still not persuasive for such big sharks
When you compare the traditional and crypto market, always consider the fact the size of crypto market, even existing for a decade, crypto market is still smaller than traditional market. In fact, the growth of crypto market is seen on the numbers from users and prices of coins in the market, on top of those million a day income for exchanges from high trading volumes. Crypto might not be persuasive for big players like the traditional one, but it will definitely will soon, for now only brave are unafraid of the volatility.

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July 11, 2020, 09:49:25 PM
 #37

Since March 2020, assets managed by Grayscale Bitcoin Trust have increased from US $ 1.577 billion to US $ 3,451 billion. This increase signifies increasingly intense demand from institutional investors.
The number of Grayscale Bitcoin Trust assets that reached their highest point, when the price of a Bitcoin landslide was more than 50 percent of its peak price, is a positive sign. This means that financial institutions have high confidence in BTC's long-term trends.


Yes they do because they know very well about the importance of Bitcoin. The need and value of Bitcoin is increasing day by day. Bitcoin is an asset to me that you can compare to gold or land. As the value of Bitcoin grows many people are interested in investing in Bitcoin. The number of people buying bitcoin is increasing day by day that's normal.


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carlfebz2
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July 11, 2020, 09:57:59 PM
 #38

Since March 2020, assets managed by Grayscale Bitcoin Trust have increased from US $ 1.577 billion to US $ 3,451 billion. This increase signifies increasingly intense demand from institutional investors.
The number of Grayscale Bitcoin Trust assets that reached their highest point, when the price of a Bitcoin landslide was more than 50 percent of its peak price, is a positive sign. This means that financial institutions have high confidence in BTC's long-term trends.

You cant only just point out on a specific kind of event that proves out that they are buying out coins yet we dont even know that they are accumulating

gradually in the back without being noticed out by the public. They are saying that institutional investors money should come in to this market but

we are pretty sure that theyve already done such thing, maybe not on a full aspect manner but there are already some considerations.

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July 12, 2020, 03:32:12 AM
 #39

Since March 2020, assets managed by Grayscale Bitcoin Trust have increased from US $ 1.577 billion to US $ 3,451 billion. This increase signifies increasingly intense demand from institutional investors.
The number of Grayscale Bitcoin Trust assets that reached their highest point, when the price of a Bitcoin landslide was more than 50 percent of its peak price, is a positive sign. This means that financial institutions have high confidence in BTC's long-term trends.

Why do you think that the confidence is high and that they trust in long term trend? Maybe they will dump the moment it will turn bearish, and they will sell when they will reach modest profit, instead of waiting for the moon. Frankly, we have no idea what their strategy is, so I wouldn't make any hopes that institutional investors are going to help create bull market or something.
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