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.

[naikturun]

Yes, institutional buying and selling can definitely change the Bitcoin market. Large institutions can create significant buying or selling pressure, which can affect liquidity, volatility, and price movements.
What becomes even more interesting is when institutions accumulate a large portion of the available Bitcoin supply. If they eventually hold a significant share of the supply, the “gameplay” could change because less Bitcoin would be available to trade on the open market. That could make supply more constrained and potentially make large market moves more impactful.
So, institutional accumulation is not just about price today it could also influence how the Bitcoin market behaves in the future.

[fullfitlarry]

Yes, institutional buying and selling can definitely change the Bitcoin market. Large institutions can create significant buying or selling pressure, which can affect liquidity, volatility, and price movements.
What becomes even more interesting is when institutions accumulate a large portion of the available Bitcoin supply. If they eventually hold a significant share of the supply, the “gameplay” could change because less Bitcoin would be available to trade on the open market. That could make supply more constrained and potentially make large market moves more impactful.
So, institutional accumulation is not just about price today it could also influence how the Bitcoin market behaves in the future.

For selling, if we don't know about it, then it won't have significant effect. There are institutions that are not going to the usual channel of selling. And so we won't see those large orders in exchanges as obviously it can have an impact to traders or investors.

Traditionally, they go over-the-counter and almost all exchange offer this to whale and institutions. I don't think it will have a significant on the future. Bitcoin is one market that really moves in just a day and then the impact is not going to be long lasting. Perhaps if we are early on, then it could be. But right now, the market has evolved so much.

[hyudien]

For selling, if we don't know about it, then it won't have significant effect. There are institutions that are not going to the usual channel of selling. And so we won't see those large orders in exchanges as obviously it can have an impact to traders or investors.

Traditionally, they go over-the-counter and almost all exchange offer this to whale and institutions. I don't think it will have a significant on the future. Bitcoin is one market that really moves in just a day and then the impact is not going to be long lasting. Perhaps if we are early on, then it could be. But right now, the market has evolved so much.

You are right, the closest example is the sale that MicroStrategy did several times some time ago, there was no serious panic in the market, but still need to feel worried if talking about the institutional role because with the bitcoin holdings that they have collected so far, there is concern that in the future they can manipulate the market more easily, because it must be admitted that when the circulating supply is mostly controlled by them, they naturally have power as a driver.

[Renampun]

Many investors still tend to wait and check the news before deciding whether to enter the market or sell.. when they see institutions getting involved, especially big ones, they'll decide to buy, and that can affect Bitcoin's price. Also, when institutions sell more, investors are more likely to consider selling their Bitcoin too. So, whether institutions buy or sell can somewhat influence Bitcoin's price.. but this mostly affects the short term where Bitcoin price movements are more likely to be influenced by macro or micro news.. whereas in the long run, it's more influenced by Bitcoin's fundamentals.

[HelliumZ]

I don't see institutional buying and holding Bitcoin as a good idea because the decentralized nature of Bitcoin becomes centralized when institutional buying occurs. For example, Michael Saylor's buying and holding of Bitcoin by his institution MSTR points to the centrality of Bitcoin. When these institutions suddenly start selling their Bitcoin to the market, there is a possibility of a major impact on the market. So for now, I think institutional buying and selling of Bitcoin is a kind of threat to Bitcoin.

[yixichloro2xx]

Many investors still tend to wait and check the news before deciding whether to enter the market or sell.. when they see institutions getting involved, especially big ones, they'll decide to buy, and that can affect Bitcoin's price. Also, when institutions sell more, investors are more likely to consider selling their Bitcoin too. So, whether institutions buy or sell can somewhat influence Bitcoin's price.. but this mostly affects the short term where Bitcoin price movements are more likely to be influenced by macro or micro news.. whereas in the long run, it's more influenced by Bitcoin's fundamentals.

You said it well, these institutional buys or sell only affects Bitcoin in the short term. But I don't expect investors to start following the steps of those big players, this kind of movements are for traders. These can't hold bitcoin for a long term, alot of just want to hop in , take some profit and invest in another projects. They keep moving their money around. Any investor who decides to change his plan to short term will just be exposed to risk, they might even become the liquidity for those bigger players. It's better to stick to their long term goals and stop reacting to what those guys are doing.  As an investor you have higher chance to become more profitable than a short term trader, only if your investment are done properly.

[osasshem]

I don't see institutional buying and holding Bitcoin as a good idea because the decentralized nature of Bitcoin becomes centralized when institutional buying occurs. For example, Michael Saylor's buying and holding of Bitcoin by his institution MSTR points to the centrality of Bitcoin. When these institutions suddenly start selling their Bitcoin to the market, there is a possibility of a major impact on the market. So for now, I think institutional buying and selling of Bitcoin is a kind of threat to Bitcoin.

I don't really think if it will affect the market that much, reason is, the market and Bitcoin is becoming immune to these aggressive behaviours shown, and public figures are no more influential to the price movement anymore, compared to how the market did react in the early days and even in the election period of D.T.
If maybe they (MSTR) in time to come (maybe in the bullish market) wish to sell their holdings, it will only pose an immediate threat, because there will be more people to buy the sell off. As a financial institution, they are more interested in making more profits, therefore they may not be willing to sell off all at once.