Do institutional buying and selling really change anything

[letteredhub]

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.

You've just buttressed it in different words yourself and I think you understand what I mean by what I said in first comment. After all essentials has being met and what's left is the funds you can use to do anything you wish, equally as you can use it for pleasurable activity since essentials has being taken care of, so it's definitely not money that can make you catch cold should it be lost onto investment, that's why I consider it as funds a person can afford to lose.

Spare cash is still money so whatever happens the investor might still feel the loss, no doubt at that, but such loss can't be quantified to when you use funds that were supposed to be projected into some essential course that needs to be done. The anxiety and grieve at loss would definitely be different.

[#CapsLOck]

I believe there are two separate impacts that are frequently confused. If the coins sell off-the-shelf OTC. An institutional sale can have direct price effects. Although the announcement itself may have an impact on market sentiment. The size of a sale can be a preview of the coins future demand. Liquidity or confidence prior to when they even arrive at an exchange. Thus the activity in institutions is important beyond the number of BTC actually sold. Direct supply impact will be related to how and where the coins are sold. And information around the transaction will be able to affect traders expectations.

[serjent05]

I agree that institutional buying and selling will change anything as long as it is OTC.  If Bitcoin is sold as an "IOU" (Bitcoin futures ETF), there is no effect on the market because the fund never goes to the market to strengthen the demand for Bitcoin.  The money is stuck with the company that is issuing the "IOU".

The hype of a huge company engaging with Bitcoin will surely hype the market, but it will only create a temporary boost, unlike the company continuously buying BTC OTC.

[danadc]

Seeing how the market is acting on the price of BTC, I do see that institutions are changing a lot. I've seen in many articles that institutions absorb many attacks through which they want to lower or raise the price; absorbing is what they do most to maintain the positions of the largest investments.

This has kept investments and the market at a price that almost reached $90k, but didn't because the market wants to push it down.

[STT]

The ideal setup for institutions is to take the market maker or house position in a market, not to ever lose or be able to lose alot just be involved in the traffic and liquidity of a market.   That might be why it seems to be that they are not expanding the market exactly in backing merely playing for the easy pickings.
   One positive that could be said to be true is monetary velocity and price certainty is likely rising with the increased buying and selling, sharp sell offs or crashes become less probable in theory at least.

[Ab de villiers]

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.

Bitcoin is living a free life without any control. No one is saying anything about it, but having huge buying by institutions makes a good impact on its price. Firstly, whales were doing things like these, now it's changed, and these big institutes are having their own way of doing business. They have never been able to control this, but they are having enough influence on price because their plan has  done good work for having a decline or increase. No one denying about engagement of these big institutes about price but they are have time being they are not going to be do this for long time as well.

[Jubilee58]

There is something I notice when this big institutions buy or sell Bitcoin, while there could be many Bitcoin investors round the globe ranging from individuals to institutions, and government, when there is a large sale of Bitcoin by these institutions there seems to be some level of price, and it will be noticed depending on the number of Bitcoin sold, but Bitcoin always have a way of recovering from any price drop, and sometimes the it might not take too long for Bitcoin to recover because as there is a large sale as the price price drops, there are also many other investors who will take that advantage to accumulate more of the Bitcoin price which will also aid quick Bitcoin recovery. This same thing also hapeen when there is a large purchase of Bitcoin by big institutions like strategy or government of a country, this can also lead to upward movement in the price of Bitcoin. However, this movements are just within a short period of time. Originally, in Bitcoin investing, there is a reason which I think both large sales, and large purchase does not change.