BTC Sell Off left with a bloody aftermath
BTC price trades at around 50% down from 2021 highs set at the Coinbase stock market debut. The rally was driven by institutions that get into crypto and ended by the similar entities that driven up the prices.
Crypto: Not a Fantasy anymore
Until the last couple of years, the crypto market was a fantasy. Also, it is a sector from traditional finance that connects with ransomware, dark web, and tax evasion.
Retail investors adopted Bitcoin with the aim of disrupting traditional finance over the years. Now it is starting to work. Institutions and bigger banks and governments can’t ignore the technology anymore. Many are taking the plunge in their own way.
PayPal and other payments brands are now supporting crypto; national governments are now considering central-bank issued digital currencies. Institutions are now buying, selling and trading BTC.
Bitcoin’s other side: Institutions Selling Could be Devastating
Institutional investors are referred to as “smart money” because of their ability to spot the trend changes early, or maybe because of the size that they were the ones behind the trends.
Institutions are not typical traders. The hedge funds and more all have teams dedicated for technical analysis, fundamental analysis, macroeconomics, and many more. With their combined intel, strategies are also devised.
They purchase assets that are expected to do well, then take profit when there are profits to secure. Institutions don’t “HODL” hoping for hundreds of thousands of dollars each coin. Rather, they acknowledge that they are up by a few hundred percent in just a few months. Then, they took profits before the retail investors realized what was really happening.
Bitcoin could have made it to $1 trillion, but crypto remains speculative. It is also sensitive to sentiment changes, and it can be extremely volatile. Some institutions know all these things and took some risks off the table before the market collapses.
The realized losses have been the highest in history. And institutions were not the only ones suffering.
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