If Institutional Investors are Buying Why Would We Want to Be Selling?

From 2019 and some few months in 2020 we have seen the price of bitcoin ranging between $3,000 to $20,000. This was because we didn’t have much institutional investors participating in the bitcoin market. Usually they are different types of investors in an asset. We have both the retail and institutional investors.

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Retail investors are people like you and I who buy our assets through brokers, retail investors buy in smaller quantities than the institutional investors. But the institutional investors are the whales and elephants in the market, their actions make differences in the market price. They buy in larger quantities, they mostly don’t use their money but use the money of their investors, we can find institutional investors in pension funds, investment bankers, insurance companies, mutual and hedge funds.

But through the past years it has been retail investors buying bitcoin, or wealthy retail investors, the price was going bullish because of a lot of retail investors invest on an asset, the price will move up relatively high like it would if an institutional investor put their money in.

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But in mid 2020 it all change, we started seeing a lot of institutional investors having interest in bitcoin. If the market wants to keep going up continuously, big money from big investors need to keep flowing in. For a long time now, we the crypto community has been anticipating and hoping for the day the institutional money will be pumped into the market because its price spike force comes with much more magnitude than that of the retail investors.

In late 2020 and early 2021 we saw lots of big time companies publicly declaring their bitcoin holdings. We can see from Microstrategy, Tesla, Galaxy Digital Holding, Square Incorporated and more. But in the month of May/ June it felt like the involvement of bullish institutional investors had stopped, but things are looking different now.

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