Crypto What is the Fate of Institutional Investors during and after the dip in the cryptocurrency market ?

Josemendez

Verified member
If you have been following cryptocurrency news right from mid 2020 , you will discover that the cryptocurrency world witnessed the entry of Institutions into the cryptocurrency world.
Institutions like Microstrategy first took the bull by the horn by investing massively in cryptocurrency market and they were followed by other Institutions like Grayscale , Tesla and PayPal .

Their investment gave the cryptocurrency world a boost amdist the covid-19 pandemic. They also were able to make profits during the bullish period of late 2020 to early months of 2021.

Now , the dip in the market has indeed affect some of them especially microstrategy. Analysis has shown that their stock has fallen drastically ever since the fall in the crypto market started. These Institutions to an extent have investors in them and these investors may at some point decide to sell their shares . Will they be able to fund the sell of shares of one comes ? , Considering the fall in the market , will they be able to pay monthly rewards to investors ?. After the dip , do you think that they will continue to invest in the cryptocurrency market after gaining back their capital and profit ?

I believe that some of them will sell some of their crypto during the bull in order to argument for the expenses they made during the dip. What is your take on Institutional investors fate during and after the dip in the market ?
 

Chibson

VIP Contributor
I don't think the institutional investors of cryptocurrencies will just sell off their investment in losses. Some might have sold their own but I don't think those who are wise enough will sell theirs because they will be incuring a very huge loss and of course they know that cryptocurrency generally is very volatile and they can still make profit in the nearest future.
 

Mika

VIP Contributor
Recently, Apple has invested heavily in bitcoin. Maybe this investment will give a boost to the cryptocurrency ecosystem. For a crypto currency to excel, it needs institutional investors. Small investors and traders may never make a big difference in the crypto currency market. I think the big investors are the ones who actually benefit from crypto currency investment
 

Sherman198

VIP Contributor
The Whales and the behemoths are diverging into cryptocurrencies this days because they want to make the best of it, by making profits on their investment. As the likes of Elon Musk:Tesla is investing much capital and some other institutions, their major aims are to invest during the Bear run by buying the dip and make some profits during the bull run.
 

btaliat

VIP Contributor
Anyone who is closely familiar with George Orwell and Robert Green will know how financial market play out. Most time, they show us what they wish to show us and not what we want to see. The hug whale that are into crypto is not a thing of joy to crypto users. They are doing business, though their entry may bring rise to the crypto price, it doesn't matter. That's why Amazon investment of recent do nothing or little change to the bearish moment.
 

Josemendez

Verified member
I don't think the institutional investors of cryptocurrencies will just sell off their investment in losses. Some might have sold their own but I don't think those who are wise enough will sell theirs because they will be incuring a very huge loss and of course they know that cryptocurrency generally is very volatile and they can still make profit in the nearest future.
No one is expecting them to sell their coins now that the market is not favourable . What I mean that when the bull start again , some of them will sell their bitcoin at some point in time during the bull so that they can be able to cover for the loss they made during the dip , especially those that paid rewards to their investors through other sources during the dip.
 

sincerem

VIP Contributor
Up till now I haven't seen the investment PayPal did around Cryptocurrency. Others own showed clearly that they invested around Cryptocurrency bit PayPal own never displayed at all. PayPal promised to launch crypto via its platform that will enable its investors/customers to have the option to convert Cryptocurrency to PayPal cash, and PayPal cash to crypto and vice versa. Up to now such inclusion wasn't carried out.
 

Josemendez

Verified member
Up till now I haven't seen the investment PayPal did around Cryptocurrency. Others own showed clearly that they invested around Cryptocurrency bit PayPal own never displayed at all. PayPal promised to launch crypto via its platform that will enable its investors/customers to have the option to convert Cryptocurrency to PayPal cash, and PayPal cash to crypto and vice versa. Up to now such inclusion wasn't carried out.
The fact is that paypal involvement in cryptocurrency was first a personal one where they bought those coins for their own use. The second was that PayPal when they started allowing their users to buy cryptocurrency through their PayPal account ,it was first made to be for the hose in the US and UK. This is why most people are still in anticipation of the Introduction of crypto in PayPal.
 

sincerem

VIP Contributor
The fact is that paypal involvement in cryptocurrency was first a personal one where they bought those coins for their own use. The second was that PayPal when they started allowing their users to buy cryptocurrency through their PayPal account ,it was first made to be for the hose in the US and UK. This is why most people are still in anticipation of the Introduction of crypto in PayPal.
I got the information cleared now, its mainly for those living in the U.S, and U.K territories. Why the later was bought for their personal banking and future benefits. We are all anticipating for the PayPal to crypto exchange or conversion. That time will make sense, just as payeer and airTM are doing with crypto feature.
 

Alexandoy

VIP Contributor
I think those firms or institutions that dabbled in crypto is a way of testing the waters. Like Elon Musk who was reported to have bought $1.5 billion worth of Bitcoin more likely that purchase pushed up the price of Bitcoin in the market. From $40k or more the price of Bitcoin is now down to $29k as per the market price today (July 21). What happens now to the Bitcoin holdings of Musk?
 
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