Is Bitcoin Shifting from Retail to Institutional Control?

[Ethan_Crypto]

Is Bitcoin being transferred from the hands of retail investors to those of governments and institutions?

I keep seeing news about how institutions are acquiring huge amounts of Bitcoin.

Since there has been institutional adoption, I’m concerned that the number of retail investors may continue to decrease, and Bitcoin could end up being an asset owned and controlled by institutions.

If institutions own a larger percentage, do you think that’s healthy for Bitcoin in the long run?

[Odusko]

As long as Bitcoin remains in circulation regardless of who's hands it is, we are good with that, for sure when there is more institutional holders much more than retail holders, Bitcoin will exceedily increase in value since institutional investors are long term holders unlike retail holders, so for sure the value of Bitcoin will definitely increase a d to own a full units of Bitcoin could be a bit out of reach for an average Guy, but if you work and get paid in Bitcoin you gain a lot at that point.

[Orpichukwu]

Institutions and governments are just waking up now, and they are trying to meet up with the numbers. They are aggressively buying what they can from those who are willing to sell, and they will only have control over the unit/amount of bitcoin that they will purchase and not the one that's in the hands of private owners.

If institutions own a larger percentage, do you think that’s healthy for Bitcoin in the long run?

Asking if it will be healthy for Bitcoin in what aspect, if I may ask, for security I don't see that having any significant negative impact on Bitcoin; for price, the highest holder can easily use their influence to manipulate the market to some extent.

[Findingnemo]

If institutions own a larger percentage, do you think that’s healthy for Bitcoin in the long run?

It depends, for example, on the price point it is going to be a lot expensive than current value but if large portion of bitcoin ends up in the hands of a few people then it just goes against the core concept of bitcoin which is decentralization. We can't say you should not buy but why the retail investors sell if they understand the potential of bitcoin...

Realizing the importance of owning our money and being our bank can drive people to keep accumulating bitcoin which will keep the decentralization intact on the network.

[The Cryptovator]

I am really not concerned due to institutional investors. They are accumulating, that doesn't mean you can't buy it. Rather, it's good for a healthy growth of Bitcoin and better for retail investors. Due to heavy accumulation by the institutional investors price is going up. And it's better for us to get profits from Bitcoin investment. I am not concerned because they aren't going to sell Bitcoin very soon. Even if they want to sell, they won't do it at once.

I think rather than being concerned, we should take advantage of that. When massive adaptation happens, then it's a chance to increase your portfolio as well. We just need to take decisions at the right time about our holdings. Bitcoin is accessible for everyone; anyone can accumulate it anytime. So nothing to worry about. Just be a part of the revolution.

[Z-tight]

BTC is permissionless, so any institution with huge cash that is interested in BTC would accumulate a lot of coins, and there is nothing you and i can do about it. BTC is not controlled by any entity, you only 'control' the BTC's you own, so even if institutions acquire a lot of coins, they cannot control the BTC network, they can only manipulate the price, which will be temporary.

[sheenshane]

I have heard this so many times, people are afraid of institutional investors, such as MicroStrategy.  Currently, this institution has accumulated 2.636% of the total Bitcoin circulation, holding 553,555 Bitcoins.  So, the big question on our minds is, what if they sell all their Bitcoins?  What will happen to the market?

If MicroStrategy were to sell all its Bitcoin, it would be a significant event, likely resulting in short-term negative effects on price and sentiment.  However, the long-term impact would depend on market conditions and the manner in which the sale is executed.  It always matters on market demand, given the massive adoption, there’s nothing to worry about.

[headingnorth]

I view institutions as I do any individual. There are good ones and bad ones.

We should recognize institutions that are good for bitcoin, and ones that are not so good.
That has been the story of bitcoin throughout its history, identifying the threats to bitcoin
and bad actors and dealing with them one by one. And it will continue to be in the future.

Thomas Jefferson once said the price of freedom is eternal vigilance. If bitcoin is freedom money
then the price to keep our freedom and preserve bitcoin's integrity is eternal vigilance.

There is a threat to bitcoin at the moment with certain bitcoin devs attempting to remove bitcoin's
built-in spam filter that allows node operators the option to refuse spam transactions on the network
These bad actors are likely getting paid off by someone imo, probably by shitcoiners who wish to sabotage bitcoin
by turning it into another ethereum or solana. The good news is they will not succeed, but they won't give up without a fight.
 

[nelson4lov]

~Snipped

If institutions own a larger percentage, do you think that’s healthy for Bitcoin in the long run?

I suppose retail had over a decade to accumulate as much as possible before the institutions came in. We knew the institutions and big players will be coming long before talks of Bitcoin ETFs started years ago and it was as something that was expected if Bitcoin is to achieve the ultimate goal of bitcoin a global monetary system that is adopted everywhere.

[BitHodlers]

Bitcoin could end up being an asset owned and controlled by institutions.

If institutions own a larger percentage, do you think that’s healthy for Bitcoin in the long run?

You can't control Bitcoin through ownership, no matter the amount that you acquire.

I have heard this so many times, people are afraid of institutional investors, such as MicroStrategy.  Currently, this institution has accumulated 2.636% of the total Bitcoin circulation, holding 553,555 Bitcoins.  So, the big question on our minds is, what if they sell all their Bitcoins?  What will happen to the market?

The market price has nothing to do with control, even if they owned 10 times as much Bitcoin it would change nothing. They would have no control over it. I know that many have issues understanding this concept, including the majority of people who are in crypto. 

[BADecker]

It simply depends on how people use Bitcoin. If they go through a government controlled corporation like Coinbase, they can expect to have to follow government regulations.

On the other hand, if they use Bitcoin person to person, the only thing that counts is the agreement between the two people. If the agreement includes a 'hold harmless' clause, there is nothing that government can do. Why? Because the Constitution Contract Clause - Article 1, Section 10 - has been adjudicated to mean that government has to keep hands off private contracts.

This is why it is beneficial for people to set up a simple Private Membership Association (PMA) between themselves before doing P2P transactions... in Bitcoin or anything else.

[DanWalker]

I am really not concerned due to institutional investors. They are accumulating, that doesn't mean you can't buy it. Rather, it's good for a healthy growth of Bitcoin and better for retail investors. Due to heavy accumulation by the institutional investors price is going up. And it's better for us to get profits from Bitcoin investment. I am not concerned because they aren't going to sell Bitcoin very soon. Even if they want to sell, they won't do it at once.

I think rather than being concerned, we should take advantage of that. When massive adaptation happens, then it's a chance to increase your portfolio as well. We just need to take decisions at the right time about our holdings. Bitcoin is accessible for everyone; anyone can accumulate it anytime. So nothing to worry about. Just be a part of the revolution.

This is an open financial market, meaning that as long as the market is active (buying and selling), anyone with money can participate and become an investor. So I've never felt too worried about institutions or governments intervening in the market. As you said, this is even good for bitcoin both in the short and long term as it drives up demand for bitcoin, which in turn pushes the price of bitcoin up.

But it is important to note that if organizations or governments hold the majority of the supply, this could undermine the decentralized nature of bitcoin. But in the end, we can only adapt, we can't do anything to stop it whether we like it or not.

[crwth]

Well, that's why many people are betting on the rise in the price of Bitcoin just because it is being accepted and collected by institutions. Unless that institution decides to sell off, it's a good thing, and that could be based on the news about how the company is doing.

Retail investors would still have a hard time because it's a PVP, and if there are big players like institutions, then it's a big win if they accumulate.

[Alpha Marine]

Institutions currently hold 13% of bitcoin while governments hold 3%. I don't see a problem of institutions and governments having a major percentage anytime soon. If governments and institutions decide to buy up more bitcoins, they're not going to do it all at once, its going to be over a period of time, most likely years and in that time bitcoin will become more expensive so it wont be easy for them to buy as many bitcoin as they want.

However, even if they hold a major percentage, as long as the bitcoin is still in circulation, meaning people can buy whenever they want, then there is no problem. This will only cause scarcity, and scarcity with the same or higher demand drives the price up.

[Pi-network314159]

Is Bitcoin being transferred from the hands of retail investors to those of governments and institutions?

It is not being transferred from retail investor to institution or government investor, but rather large number of institution are adoption Bitcoin and making it reserve asset.and of course they are adding liquidity to the market and the market will be bullish.

I keep seeing news about how institutions are acquiring huge amounts of Bitcoin.

Bitcoin is worth buying, institution buying it is a good sign that more people are adopting Bitcoin massively. This will trigger most investors to buy Bitcoin more.

Since there has been institutional adoption, I’m concerned that the number of retail investors may continue to decrease, and Bitcoin could end up being an asset owned and controlled by institutions.

The massive adoption of institution or organization has nothing to do with number of investor decreasing. The retail or individual investors will only shear percentage with the instructional investors.

[davis196]

Is Bitcoin being transferred from the hands of retail investors to those of governments and institutions?

I keep seeing news about how institutions are acquiring huge amounts of Bitcoin.

Since there has been institutional adoption, I’m concerned that the number of retail investors may continue to decrease, and Bitcoin could end up being an asset owned and controlled by institutions.

If institutions own a larger percentage, do you think that’s healthy for Bitcoin in the long run?

If the retail investors want to sell their BTC to financial institutions, they are free to do so. Who are you to tell them want to do with their Bitcoins? Most financial institutions are managing financial assets on behalf of their customers, so I don't see a problem here.
I don't have any valid and verified data about retail investors running away from Bitcoin. If the bull market continues and there's an ongoing expectation that the BTC price will keep increasing, the number of retail Bitcoin investors could only grow.
There's always the suspicion that the crypto markets might be manipulated by the institutional investors and the "crypto whales", but I don't think that anyone could find any evidence for a market manipulation.

[freedomgo]

It turned out that way, but honestly, it’s a good thing so the market won’t be too manipulated anymore.

And I think it was bound to happen. Once the government started regulating Bitcoin, institutional investors gained more trust and confidence in the market. That’s also why the ETF got approved. But for us, it’s not really a big concern. What matters is the increase in demand so the price goes up.

We can still stick to the same strategy though, buy cheap and hold long-term because bear markets will still come, even if prices are high right now.

[fikrett]

It turned out that way, but honestly, it’s a good thing so the market won’t be too manipulated anymore.

And I think it was bound to happen. Once the government started regulating Bitcoin, institutional investors gained more trust and confidence in the market. That’s also why the ETF got approved. But for us, it’s not really a big concern. What matters is the increase in demand so the price goes up.

We can still stick to the same strategy though, buy cheap and hold long-term because bear markets will still come, even if prices are high right now.

As long BTC still circulates from hands to hands - we are going to be all good, in my opinion.

[betswift]

Well, that's why many people are betting on the rise in the price of Bitcoin just because it is being accepted and collected by institutions. Unless that institution decides to sell off, it's a good thing, and that could be based on the news about how the company is doing.

Retail investors would still have a hard time because it's a PVP, and if there are big players like institutions, then it's a big win if they accumulate.

I do not think everybody is going to sell off once they reach initial targets - surely, they would understand where the gold lies and continue to try to accumulate more - to profit more.

[asriloni]

Institutions currently hold 13% of bitcoin while governments hold 3%. I don't see a problem of institutions and governments having a major percentage anytime soon. If governments and institutions decide to buy up more bitcoins, they're not going to do it all at once, its going to be over a period of time, most likely years and in that time bitcoin will become more expensive so it wont be easy for them to buy as many bitcoin as they want.

However, even if they hold a major percentage, as long as the bitcoin is still in circulation, meaning people can buy whenever they want, then there is no problem. This will only cause scarcity, and scarcity with the same or higher demand drives the price up.

The more bitcoins being hold by Gov and institution means market can be easily driven by them. Bitcoin can't be controlled directly as it's using permisionless system, but market can be driven by them by owning a lot of bitcoin.

People can be scared with the potential dump created by news about institution and government holdings. Although institution and government adoption has positive side, it has also negative side as well.