As the market is a bit recovering some of you probably wonder whether whales and institutions accumulate crypto assets.
Well, this is a good question and quite difficult to find an easy answer.
Professionals are highly cautious in accumulating new assets and often invest in a way that it has minimal impact on the short-term price trend of the asset or the currency.
The don’t buy 1000 BTCs in one moment. They use bots to execute a trade with the small pieces such as 100/ 1000 USD. Simply they don’t want us to know they are accumulating.
The sign of accumulation might be the fact that the price is very low right not. Whales and institutions have enough money to control the price of a certain asset. During accumulation, they take care of the lowest price as possible. Once they finish, the price might explode.
Moreover, institutional investors tend to invest in speculative assets through the over-the-counter (OTC) market. In the case of Bitcoin , due to its lack of liquidity, institutional investors have to rely on trusted custodians like Coinbase Custody and Fidelity Digital Assets to purchase or sell large sums of BTC . OTC market operators and custodial solution providers are not obliged to share their trading volumes and as a result, data held by OTC exchanges are rarely released to the public.
Currently, the demand for Coinbase Custody, Bakkt, and Fidelity DIgital Assets is one of the limited ways to justify institutional demand for crypto and recently, Bakkt confirmed that the demand is growing rapidly.
This is clear that many crypto projects are still developing, delivering milestones, making agreements with big tech giants hiring new people. This whole ecosystem is growing rapidly which is not reflected in the price yet thus it is a big sale-off. Purchase now will pay off in 2019. No doubt about that.
The whole is on the chart.
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