In the past month, bitcoin prices fell 35%, encryption money market suffered in 2018 the most serious selling activities.
From the Kobre & Kim of the government law enforcement and litigation defense lawyer Jake Chervinsky Securities said that ordinary investors to sell in the market of encryption currency at the same time, institutional investors are secretly hoarding coins.
After bitcoin prices fell below 4000 U.S. dollars: Retail: “I should not now be selling coins and low back? I am not a single open space should be? Or I give up? Bitcoin will return to zero? Encryption is a scam money? ” Institutional investors: “please continue to sell cheap bitcoin to me, thank you.”
Institutional investors really money in the store?
Chervinsky from the view of discussion of encryption currency community, the majority of people are skeptical, they think the development momentum of mainstream digital assets, institutional investors do not enter the motivation.
If institutional investors really continue to buy coins, then bitcoin prices should rise, not fall 35%.
Chervinsky said, professional traders and institutional investors in new assets are usually cautious, they take the investment effect of short-term price of an asset or currency are not too large.
Some people think that as long as the institutional investors to buy, bitcoin prices will rise rapidly. But professional traders can hoard assets in the premise of not affecting the market.
I have worked with the investors and traders are not purely speculative buying assets. They are buying stock, while hedging in other markets to reduce risk.
Institutional investors are more inclined to OTC market investment and speculative assets. In contrast, lack of bitcoin liquidity, institutional investors must rely on Coinbase Custody and Fidelity Digital Assets hosted services to sell large amounts of bitcoin.
OTC market operators and managed service providers have no obligation to share their platform trading volume, therefore, the OTC transaction data almost never publicly, we are very difficult to determine whether institutional investors in buying a lot of bitcoin.
However, Chervinsky still be tracked. Bitcoin Investment Trust Fund (Grayscale Investment) Gray said there is a lot of capital inflows, such as Yale University also began investing in crypto currencies, which indicates that compared with the traditional financial sector bitcoin demand continues to increase.
The uncertainty still exists
Is still unable to determine whether institutional investors are only interested in money or encryption for the purpose of long-term investment to buy bitcoin.
The service at this stage of Coinbase Custody, Bakkt Fidelity and DIgital Assets etc. the demand is one of the methods of institutional investors on the encryption of money demand is one of the few that. Recently, Bakkt has demonstrated this demand is growing rapidly.
In addition, we are also very difficult to quantify the institutional investor demand for encryption currency, unable to prove their need and when buying bitcoin.