Do institutional buying and selling really change anything

[Tonimez]

As we have seen, MicroStrategy’s buying or selling of Bitcoin no longer has a significant impact on the market. Personally, I am happy with this development, which I consider a very good and healthy thing for the market.

For a decentralized market like Bitcoin, it is not at all beneficial to be linked in any way to any company, institution, or government. Bitcoin must be completely decentralized, remaining unaffected by the buying and selling decisions of any company, regardless of its size.

I think every investor is beginning to understand that bitcoin is not dying anytime soon and should not be controlled by a single individual and also, this has helped reduce the deciet that these institutions play and how they control the market price. I think that bitcoin was able to go past that stage of institutional control because, even when institutions start selling, individuals no longer panic and sell, instead they intensify buying because they now understand that the institutions try to initiate panic and when the price starts going down due to massive sales, the institutions /whales buy back massively and get the price high again, leaving the poor investors in losses. Bitcoin is gaining more adoption because investors are beginning to understand some of these tricks that institutions use to play.

[New Judgement]

Institutions sell large sum of bitcoin and when they do, investor that are already panicked panic more because they believe the price of bitcoin will crash and they can't  afford to lose their money. They will sell their bitcoins just to pull their money off the market, and on the course of doing that, they will cause sell pressure in the market that could influence some investors to sell their bitcoins which will cause the bitcoin price to drop. So, institutional selling of bitcoin change something in terms of bitcoin market price reaction in the short term.

I pity those that panic when big institutions are selling off part of their bitcoins, they follow them and sell too. Don’t they realize it could be a deliberate attempt from the side of the institutions to manipulate the market so they will buy cheaper. Investors should know what they want before investing in bitcoin so they can be able to stand their ground at all time, even when there are selling activities from know entities. Especially entities that has the ability to buy back more bitcoins than they sold.

[jossiel]

I pity those that panic when big institutions are selling off part of their bitcoins, they follow them and sell too. Don’t they realize it could be a deliberate attempt from the side of the institutions to manipulate the market so they will buy cheaper. Investors should know what they want before investing in bitcoin so they can be able to stand their ground at all time, even when there are selling activities from know entities. Especially entities that has the ability to buy back more bitcoins than they sold.

That is because they use the institutions as their indicators, they don't have their own plan to follow and so they use them as one of the signs of what they should do.

They don't need to pity them because later with that panicking will teach them a valuable and that's not to be reactive every time institutions do something.

At point, they'll see that the manipulation is a real thing and they're one of those successfully manipulated by those news of selling off.

[Donneski]

I pity those that panic when big institutions are selling off part of their bitcoins, they follow them and sell too. Don’t they realize it could be a deliberate attempt from the side of the institutions to manipulate the market so they will buy cheaper. Investors should know what they want before investing in bitcoin so they can be able to stand their ground at all time, even when there are selling activities from know entities. Especially entities that has the ability to buy back more bitcoins than they sold.

That is because they use the institutions as their indicators, they don't have their own plan to follow and so they use them as one of the signs of what they should do.

They don't need to pity them because later with that panicking will teach them a valuable and that's not to be reactive every time institutions do something.

At point, they'll see that the manipulation is a real thing and they're one of those successfully manipulated by those news of selling off.

While I'm among the people who believes that these large holders usually try to manipulate the price movement of Bitcoin by selling or sometimes buying Bitcoin in large amounts, I don't think it's fair to tag every move they make as manipulation of the market. Sometimes, they also react to the market conditions just like every other person.

That said, it's important for small traders not to treat every move institutions make as signals they must copy. A small trader who does that will likely end up panic buying and selling all the time without understanding why they're either buying or selling.

[jossiel]

That is because they use the institutions as their indicators, they don't have their own plan to follow and so they use them as one of the signs of what they should do.

They don't need to pity them because later with that panicking will teach them a valuable and that's not to be reactive every time institutions do something.

At point, they'll see that the manipulation is a real thing and they're one of those successfully manipulated by those news of selling off.

While I'm among the people who believes that these large holders usually try to manipulate the price movement of Bitcoin by selling or sometimes buying Bitcoin in large amounts, I don't think it's fair to tag every move they make as manipulation of the market. Sometimes, they also react to the market conditions just like every other person.

That said, it's important for small traders not to treat every move institutions make as signals they must copy. A small trader who does that will likely end up panic buying and selling all the time without understanding why they're either buying or selling.

You are right that not every selling they do is a manipulation but a reaction. But you'd also see that they're capitalizing on what they do to manipulate the market.

And so there goes the news, many other outlets, the media that uses that moment in manipulating the situation and conditions the mind of the retailers.

Just as how these institutions are reactive, we can opt to do the same or nothing at all with whatever they do.

[Smack That Ace]

For a decentralized market like Bitcoin, it is not at all beneficial to be linked in any way to any company, institution, or government. Bitcoin must be completely decentralized, remaining unaffected by the buying and selling decisions of any company, regardless of its size.

Well, Bitcoin market isn't decentralized, and that's simply not possible. The network can be decentralized, but the price isn't.

Just like any other asset, most of the trading volume happens on cexs and through ETFs. Its price depends on capital flows, investor sentiment and market liquidity. So expecting the Bitcoin market to be fully decentralized and unaffected by any company or institution is just not realistic.

Big players influencing the market, and even manipulating it, has always been part of financial markets. We need to understand and adapt to that instead of thinking we can somehow wish it away .

[Ishicryptic]

Institutions sell large sum of bitcoin and when they do, investor that are already panicked panic more because they believe the price of bitcoin will crash and they can't  afford to lose their money. They will sell their bitcoins just to pull their money off the market, and on the course of doing that, they will cause sell pressure in the market that could influence some investors to sell their bitcoins which will cause the bitcoin price to drop. So, institutional selling of bitcoin change something in terms of bitcoin market price reaction in the short term.

I pity those that panic when big institutions are selling off part of their bitcoins, they follow them and sell too. Don’t they realize it could be a deliberate attempt from the side of the institutions to manipulate the market so they will buy cheaper. Investors should know what they want before investing in bitcoin so they can be able to stand their ground at all time, even when there are selling activities from know entities. Especially entities that has the ability to buy back more bitcoins than they sold.

Institutions knows that they have the capability to manipulate the market on the short term to create their desired reaction from weak hands and those who follow FOMO it is their marketing strategy to influence the market before buying cheaper or selling higher. We cannot underestimate the influence of moneybags that are holding Bitcoin, their massive buying and selling have to influence the market because it is aggregate demand and supply that determines where price would be at everything. But I'm happy that whatever whales and institutions schemes to manipulate price it would only be relevant over a short time, so as long as you buy and hold without selling you won't be affected by their market manipulations.

[Leahized]

We all know that the increase in the price of bitcoin is driven by demand, so large institutional buying usually make the price of bitcoin to increase. The recent upward movement bitcoin has been making since last month until now was because of large institutional buying. I didn't care to take about the buying side of the post because I feel most people here knows that institutional buying influence the bitcoin price to increase.

Yes, it is true that institutional purchases have an impact on the movements of the crypto market. Recently, the investment in ETF has increased the demand for Bitcoin among others. As a result, Bitcoin has been able to reach $64k to $80k. When large companies like MicroStrategy sell Bitcoin, then are similarly affected. But they proceed with strategies that do not have too much impact on Bitcoin.

Moreover, we are hearing bad news constantly these days, which seems never ending. For example: frequent wars, imposition of tariffs, etc. which have now become tolerable in the case of Bitcoin. These events can no longer significantly affect Bitcoin. However, unexpectedly, institutional selling could lead to a significant decrease in the value of Bitcoin.

[osasshem]

Institutional purchases and selling of Bitcoin is at the moment not having much effect to Bitcoin as compared to the early days Bitcoin, where simple statements can shake the entire market, where whales had serious effect on the market. Currently, news like this is now seen to be normal.

They will buy again at a more convenient time, cause this seel was to somehow increase the rate of sell off, but it didn't do much harm to the market reactions.

[laspol65]

Institutional purchases and selling of Bitcoin is at the moment not having much effect to Bitcoin as compared to the early days Bitcoin, where simple statements can shake the entire market, where whales had serious effect on the market. Currently, news like this is now seen to be normal.

Now many people around the world have held Bitcoin, so even if large institutions sell Bitcoin due to holding Bitcoin for a long time, it cannot create signs of a low Bitcoin price in the market. Because of the high pressure of buying Bitcoin in the market now, those who are selling Bitcoin are basically facing losses, thinking that if someone sells Bitcoin without holding it for a long time, that person must have failed. Due to which now the desire for long-term holding is the most in the minds of various Bitcoin holders.

They will buy again at a more convenient time, cause this seel was to somehow increase the rate of sell off, but it didn't do much harm to the market reactions.

Yes, in the past we could see large Bitcoin holders and institutions selling Bitcoin in the market and creating panic. And if they could publish this news on various social media, the price of Bitcoin would be dumped and they would take the opportunity of that dumping as a purchase. Now Bitcoin holders are not stupid, they are very patiently holding Bitcoin for a long time.

[PERtua]

Perhaps the more important question was whether the market was anticipating Strategy's sell of BTC or if it was an unexpected move. If there is sufficient liquidity and buyers are willing to take price impact, a big transaction doesn't necessarily cause significant impact. Still, the announcement can make a difference as traders could act before the coins hit the market. Thus, the price of the commodity can be influenced by institutional activity, either directly by way of the supply or indirectly by opinion in the market. That's why it's important to take a closer look at the quantity sold.

[Curious T]

I think that bitcoin was able to go past that stage of institutional control because, even when institutions start selling, individuals no longer panic and sell, instead they intensify buying because they now understand that the institutions try to initiate panic and when the price starts going down due to massive sales, the institutions /whales buy back massively and get the price high again, leaving the poor investors in losses.

There was no point in Bitcoin where institutions had control over it. They had influence in the market, and they still do, even though it is reducing. The reason the influence they have in the market is reducing is that bitcoin is getting bigger. The bigger it gets, the more the influence reduces.

Retail investors still panic and sell when the price is going down. It's not as much as it used to be, but they still panic sell. But I believe that the more Bitcoin's market cap increase, the lesser we're going to notice when people panic sell.

[Aanuoluwatofunmi]

Institutional buyers and sellers do not really have the ability to control the market, but they can influence it to an extent at a given time. What we will mostly experience is a massive dumb or pump in the market price whenever they are buying or selling huge amounts of coins. We cannot doubt that this can indeed make a relevant impact on a particular market price within a given time, because what majorly controls the price of the market is the buying and selling rate within the network.

[retreat]

I pity those that panic when big institutions are selling off part of their bitcoins, they follow them and sell too. Don’t they realize it could be a deliberate attempt from the side of the institutions to manipulate the market so they will buy cheaper. Investors should know what they want before investing in bitcoin so they can be able to stand their ground at all time, even when there are selling activities from know entities. Especially entities that has the ability to buy back more bitcoins than they sold.

Institutions might sell for any reason. They are institutions, so they can decide to sell their Bitcoin whenever they want. The wrong thing is when people panic and then sell their Bitcoin just because institutions are selling theirs. For example, when Strategy unloads their Bitcoin, it makes a lot of people panic and then sell their Bitcoin, but they don't realize that it's only temporary, the market continues to grow well and even Strategy keeps accumulating again afterward. Meanwhile, the people who sell might have already suffered big losses because they sold out of panic. That's why holders should not be easily steered by the market - even if there are sudden price movements, holders need to be careful in responding to it and hold regardless of market noise.

[JiiBs]

I pity those that panic when big institutions are selling off part of their bitcoins, they follow them and sell too. Don’t they realize it could be a deliberate attempt from the side of the institutions to manipulate the market so they will buy cheaper.

With the keyword here being panic, it simply outlines the fact that, it’s not actually the individuals reaction to do what the institutions are doing as a strategy but rather, a reaction simply aimed at minimizing the risk of running at a loss.

I don’t see that to be a strategy otherwise, I would have said it’s actually okay to utilize which ever means guarantees your purpose for investing with Bitcoin.

However, it’s not ideal to always be a follower of trends without having to attach meanings to your actions. One of the basic reason for that is as you’ve already stated, market manipulation. You have to be definitive of your strategy and how you apply them so, you don’t end up playing into the schemes of institutional investors.

[letteredhub]

I pity those that panic when big institutions are selling off part of their bitcoins, they follow them and sell too. Don’t they realize it could be a deliberate attempt from the side of the institutions to manipulate the market so they will buy cheaper.

With the keyword here being panic, it simply outlines the fact that, it’s not actually the individuals reaction to do what the institutions are doing as a strategy but rather, a reaction simply aimed at minimizing the risk of running at a loss.

I don’t see that to be a strategy otherwise, I would have said it’s actually okay to utilize which ever means guarantees your purpose for investing with Bitcoin.

However, it’s not ideal to always be a follower of trends without having to attach meanings to your actions. One of the basic reason for that is as you’ve already stated, market manipulation. You have to be definitive of your strategy and how you apply them so, you don’t end up playing into the schemes of institutional investors.

Just use your discretionary funds to get into bitcoin investment as that's the most simplest form of not getting panic or feeling emotional about risking losing your funds whenever it happens that a whale or an institution sold big chunk of their bitcoins. The panic is mostly out of the fact that the investor is risking what they can't afford to lose, because you can't move funds meant for an important project into bitcoin investment and peradventure the market price starts falling and you don't get to panic, it would be rare not to.

[Woodie]

In the world of money and textbook stuff, they say when you are anticipating to make a profit don't record it in your books but when a lose is being expected you need to record.. in the same vein, usually buys don't usually have a big impact whenever reported unlike a whale or institutional investor selling Bitcoin which carries alot of weight and has a ripple effect that herd mentality is triggered & alot of retail investors do follow the signal to sell.

[Swordsoffreedom]

Just use your discretionary funds to get into bitcoin investment as that's the most simplest form of not getting panic or feeling emotional about risking losing your funds whenever it happens that a whale or an institution sold big chunk of their bitcoins. The panic is mostly out of the fact that the investor is risking what they can't afford to lose, because you can't move funds meant for an important project into bitcoin investment and peradventure the market price starts falling and you don't get to panic, it would be rare not to.

What money can we actually afford to lose? Truth is nobody wants to lose money. That's money we worked damn hard to earn in the first place.

When people say to invest discretionary income, that doesn't mean you gotta go in already accepting you'll lose it. It simply means it's money left over after you've taken care of the essentials.

And even investing with that spare cash, the anxiety ain't just gonna vanish completely. Fear's just part of being human, and what we actually need to do is learn to manage it. Build up your knowledge, have a plan for different scenarios, and invest only with that spare money like you said. Do that, and you're much less likely to panic and make a bad call when the market goes against you.

[coinrifft]

Institutional buyers and sellers do not really have the ability to control the market, but they can influence it to an extent at a given time. What we will mostly experience is a massive dumb or pump in the market price whenever they are buying or selling huge amounts of coins. We cannot doubt that this can indeed make a relevant impact on a particular market price within a given time, because what majorly controls the price of the market is the buying and selling rate within the network.

It's more of a news now, when we heard institutions buying like Saylor or Blackrock. It could have no effect at all as the market could have been matured enough to hear and no longer be influence by this kind of news.

And so there is no manipulation as the market is getting bigger every cycle. So for me, it's good that that institutions are buying. But for us, the best thing to do is just go and buy at our own phase without really looking of who's who is buying and how big it is.

[EarnOnVictor]

this can make mainstream headlines news, but does it really change anything in terms of bitcoin market price reactions both in the long term or short term basis.
 https://x.com/i/status/2086785757620945349

First, institutional investors are investors with the biggest money, so by virtue, their pumping and dumping activities are weight than 10,000 common individuals whose combined pumping/dumping activities are still less than 5% of a single institutional investor. The arithmetic is clear if you relate it to the economics of demand and supply.

Now, amongst these investors, some have a more weighty impact, just like Saylor and his Strategy activities. Aside from the fact that they are wealthy, they are also Bitcoin celebrities. Their actions could cause between a short and medium-term impact.