Risks of instituations holding bitcoin

[Ratash]

I came across this article about  instituations holding bitcoin what do you think, is it a risk what is your opinion ?
https://cryptonews.com/exclusives/institutions-retail-compete-for-bitcoin-which-is-the-biggest-9695.htm

[DoublerHunter]

^ Yes, there could be a risk on the market price because they holding a big amount that anytime they will sell it at once and may have an impact on BTC price. Big investors like big institutions are considered as also whales but they don't have regularly playing the market, the most afraid is when they are all the same in the mind of selling their BTC. I don't know what will happen if most of them believe in FUD and do panic selling, BTC price will probably crashing out that causes a sudden dump. Nevertheless, in my mind thinking that it is impossible to happen, we are already in the middle in the mainstream, and BTC price keep growing.

[Bitcoin_Arena]

Of course institutions are here to make huge profits and not really about the Idea behind Bitcoin. Don't expect them to HODL for more than 10 years minus selling at one point. We are also likely to see more manipulations as they seek to squeeze out all the little the retail traders have. It will remain to be seen what will happen during market crashes or bear market. Shall we see very steep dips due to massive selling by whales or less volatility like in currency markets or stocks?

[aoluain]

There are some institutional investors who are treating Bitcoin as a haven for
wealth preservation ahead of inflation in the very near future.

A very interesting read, from it we can take it that institutional investors
have been consistently buying Bitcoin since 2018 with a big increase from last
year to now.

The article suggests that it is a good thing that these big investors are here, in a
way its good but in other ways its not.

For the average Joe, for the same amount of FIAT from this time last year to now,
it will buy approximately 6 times less.

[Baofeng]

I came across this article about  instituations holding bitcoin what do you think, is it a risk what is your opinion ?
https://cryptonews.com/exclusives/institutions-retail-compete-for-bitcoin-which-is-the-biggest-9695.htm

Everything is a risk, more so for those institution because they are pouring billions in the market. And it's pretty obvious that they are the one driving the price to all time highs. But are they here for long term? Looking back at the rationale behind their investment, To hold on their balance sheet, I doubt that just they will immediately sell just because their capital structure increase because of their bitcoin holdings. They are looking to also diversify. Retail will be at a disadvantage though, and that's why we should really be careful of pushing the sell button because of what we heard like FUD or some doomsayers out there.

[chaser15]

I came across this article about  instituations holding bitcoin what do you think, is it a risk what is your opinion ?
https://cryptonews.com/exclusives/institutions-retail-compete-for-bitcoin-which-is-the-biggest-9695.htm

That isn't new. We are already facing that kind of risk since the beginning.

I don't think they will just dump without a reason. On the other hand, let's accept the fact that we are also getting an advantage here.

Without them, we might not feel the benefits and essence of holding coins for long.

[jerrison]

Thee risk of institutions holding bitcoins can not be overemphasized as loads of institutions have turned into populatting their wallet with loads of bitcoin as what their portfolio's insignificant percentage can cover in the space will not be as insignificant as the percent age of funds spent from their coffers.

I came across this article about  instituations holding bitcoin what do you think, is it a risk what is your opinion ?
https://cryptonews.com/exclusives/institutions-retail-compete-for-bitcoin-which-is-the-biggest-9695.htm

[Kemarit]

And then Bitcoin becoming more of a store of value as institutions are 'out-buying' retail in a massive phase. There's a lot of advantage and disadvantage, and let's hope that they are not that foolish to dump bitcoin right away just because they made significant money already.

This bull run was fueled by them and it's hard to imagine when and what will the top because of this flow of institutional money. I say let's take this as a positive news and simply ride with them by simply holding on our precious BTC.

[Darker45]

It is a risk but there is an if. I suspect that some institutions getting into Bitcoin are not really appreciating the very essence of Bitcoin. I doubt they are appreciating Bitcoin as a currency. Some of them might not even be real believers. They are mere investors. If this is true, then there is indeed a very high risk. They accumulated Bitcoin as easily as they could dump it into the market as soon as they have already created wealth out of it.

How many institutional investors are actually creating innovations which would help Bitcoin be widely acceptable as a real world currency? How many of them are simply promoting Bitcoin as a way to store their wealth away from a decaying fiat? These institutions have existing businesses. Are they integrating Bitcoin into their systems?

[Wexnident]

Well, the volatility issue has always been a risk, and I see that institutions only invested now since the general growth of Bitcoin is at a positive and compared to the bubble in 2017? Well, it's a lot more stable. Though tbh, these institutions themselves could actually destroy this stability with them holding so much of the market. Just a single dump could cause massive damage to a lot of investors, and I'd reckon a few hands would actually follow suit, dropping the market even more.

How many institutional investors are actually creating innovations which would help Bitcoin be widely acceptable as a real world currency? How many of them are simply promoting Bitcoin as a way to store their wealth away from a decaying fiat? These institutions have existing businesses. Are they integrating Bitcoin into their systems?

I guess Paypals there, even though, well, it's like that. Looked around and saw that they finally implemented the direct conversion of their accepted crypto to the currency the merchant accepts.
https://www.theverge.com/2021/3/30/22357246/paypal-buy-with-bitcoin-litecoin-ethereum-crypto-checkout

[Silberman]

Of course institutions are here to make huge profits and not really about the Idea behind Bitcoin. Don't expect them to HODL for more than 10 years minus selling at one point. We are also likely to see more manipulations as they seek to squeeze out all the little the retail traders have. It will remain to be seen what will happen during market crashes or bear market. Shall we see very steep dips due to massive selling by whales or less volatility like in currency markets or stocks?

That is to be expected, they have so much bitcoin that now they can if they want manipulate the price of bitcoin on the short term, but that is nothing new, it is not as if whales are a recent development in the market of cryptocurrencies, whales have always existed it is just that instead of having whales that were early adopters now we have huge companies but at the end of the day the results are going to be very similar to what we have today so nothing has changed in that regard.

[mk4]

Institutional investors are, well, actual investors. In contrast to most of retail whereas they'd like to think they're real "investors" even though a good chunk of them don't even know what bitcoin is, besides the fact that it goes up in price; and that a good chunk of them would easily sell with just some good ol' FUD.

And sure, institutional investors will sell sometime in the future, but it would most definitely take years.

[Innerpumper]

All investments certainly have their own risks. It's just that in cryptocurrency there is no investment regulatory body or supervisor, if you lose bitcoin in your wallet no one will be able to help you even if they are cyber members. This is the high risk of bitcoin.

[hd49728]

Institutes and their investments will be one of very solid backbones for the market growth and the bigger adoption for bitcoin. Tesla and Elon Musk are one of very latest examples for this trend.

Tesla invested into bitcoin and just a few months later, they accept bitcoin as a payment method for Tesla products. They claimed that they won't sell their bitcoin that people paid for Tesla products. Those bitcoin will be reserved as their investment besides the amount they bought and will buy more from Coinbase Premium.

If you consider Tesla is the pioneer from Big Techs, others will join the party.

As institutes and with huge capital for investments as well as strong belief in bitcoin, they will hodl their bitcoin next 8 years in minimum. They know what the deflationary era for bitcoin block rewards will be touched in which year.

[cabron]

They will sell and could crash the market very deep and for a long time but I'm not seeing it happen very soon as the USD is also deflating. Institutions are just too rich though and when they buy again for low prices, there's going to be a lesser supply for retail inventors. The risk is when they could stabilize the price of BTC in the future, it ain't going to be good for retail investors anymore.

[Aliceooo78]

^ Yes, there could be a risk on the market price because they holding a big amount that anytime they will sell it at once and may have an impact on BTC price. Big investors like big institutions are considered as also whales but they don't have regularly playing the market, the most afraid is when they are all the same in the mind of selling their BTC. I don't know what will happen if most of them believe in FUD and do panic selling, BTC price will probably crashing out that causes a sudden dump. Nevertheless, in my mind thinking that it is impossible to happen, we are already in the middle in the mainstream, and BTC price keep growing.

I don't think it possible for institutions or whales to dump their bitcoin, otherwise it's a fake news. Bitcoin is the mainstay in cryptocurrencies and definitely lucrative. they store as many bitcoin as they can to achieve wealth accumulation and we should learn from them. risk lies primarily in altcoins, not bitcoin. anyway, I'm a devour bitcoin believer and I won't let my bitcoin go. I don't care whether it's risky for institutions to hold it.

[Jawhead999]

^ Yes, there could be a risk on the market price because they holding a big amount that anytime they will sell it at once and may have an impact on BTC price.

I don't think it possible for institutions or whales to dump their bitcoin, otherwise it's a fake news. Bitcoin is the mainstay in cryptocurrencies and definitely lucrative. they store as many bitcoin as they can to achieve wealth accumulation and we should learn from them. risk lies primarily in altcoins, not bitcoin. anyway, I'm a devour bitcoin believer and I won't let my bitcoin go. I don't care whether it's risky for institutions to hold it.

It's not even a news, rather than an assumption.

Many institutions would never want their investments in loss, that's why when there's a correction we often see institutions buy a dip and the price recover back. Even if they want to sell their Bitcoin to gain profit, they will sell some portion each day rather than sold all in one times. Otherwise, the price will crash and they can't accumulated maximum profit.

[danherbias07]

I believe in this.

In fact, institutions are likely to be more of a stabilizing influence on the bitcoin market than retail traders, many of whom used leveraged trades and aren’t able to absorb dips to the same extent as big funds and corporations.

They can create stability to hold bitcoin down from being dumped too much by old whales.
There will always be the scare when they are selling (manipulating) knowing corporations are also keeping a huge chunk of Bitcoin or worse their share will be taken away giving them a difficult time to buy back.

I'm more worried about banks. I bet they are losing profits now when investors are switching to buying Bitcoin themselves rather than investing it in mutual funds with banks as middleman.

[Darker45]

How many institutional investors are actually creating innovations which would help Bitcoin be widely acceptable as a real world currency? How many of them are simply promoting Bitcoin as a way to store their wealth away from a decaying fiat? These institutions have existing businesses. Are they integrating Bitcoin into their systems?

I guess Paypals there, even though, well, it's like that. Looked around and saw that they finally implemented the direct conversion of their accepted crypto to the currency the merchant accepts.
https://www.theverge.com/2021/3/30/22357246/paypal-buy-with-bitcoin-litecoin-ethereum-crypto-checkout

Yeah, I've heard of this. This is a nice update of PayPal's policy towards crypto. I somehow expected this, but this is not yet the way we want PayPal to treat crypto. PayPal does not still allow users to withdraw and deposit crypto. PayPal does not still pay its merchants in crypto. PayPal is still a world of its own right now. PayPal crypto owners do not yet own their crypto funds.

I also heard that Tesla is now beginning to accept Bitcoin as payment.

How about the others?

[xSkylarx]

The risk is if there is a very bad news about bitcoin resulting for thse institutions to sell all their holdings. Even one institution selling could be a big impact to bitcoin's price. This could become a catalyst for other institutions to sell also causing retailers to panic sell. Most of us invested in bitcoin because its speculated price in the future could give us big return, this is also part of the goal why those institutions invested. The question is when will they sell or what is their primary goal for investing in bitcoin.