BTC | Skeptical PoV on Institutional Involvement

We have been going through some of the most engaging months in terms of institutional investments. While Micro Strategy is adding more Bitcoin to their portfolio; "Ether Fund" is approved in Canada and Fidelity is holding Bitcoin as collateral for loans, the price does not follow the news. Just within a paragraph, there are lots of great news to see an insane bull-run but there is no overhype situation as of now.

For those who do not know, Please check Ethereum ETF for further information.

Even though I'm positive about all these investments by the institutions, the second phase that I expected for mass adoption, we also have several crypto enthusiasts who are pessimistic about some of the institution-based occasions.

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What are the cases?

There are both institutional and general concerns put forward by people to explain or foresee the pressure on the price of Bitcoin.

The first Scenario: The institutions will have a negative impact

Involvement of particular institutions such as Fidelity, DBS, and Paypal (the ones which had negative attitudes over cryptocurrencies) are now setting their position in the crypto ecosystem. Moreover, their long-term impact is expected to be reversed as far as I observed.

The second Scenario: Crypto market will be dominated by the institutions

the involvement of these giants turned the situation into exactly terrible conditions as they were on the idea that the crypto market would eventually outperform the stock market to which these institutions are belonged (Though it is not possible to stop anyone from buying digital assets 😅)

The third Scenario: Positive news in ATH means they are dumping on us

The involvement of institutions, while we are near the ATH, is to be considered while being happy for upcoming news. Although these points of view look gloomy, they have a rationale behind them.

Besides, Retail investors are not comfortable with the situation which is full of uncertainty.

The tweet has attracted a great amount of attention due to the FUD surrounding us. Taking profits for Christmas is one suggestion and, as we reach ATH, the ones who bought at previous ATH in 2017 could sell off without losing money. These are possible scenarios but how strong they are to dump the price is another case to be discussed 😌

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When we reflect on these predictions:

There are some concerns that are based on previous experiences but others can be related to personal skepticism.

1st Scenario: Possible Long-term Negative Impact

Initially, without institutions, we cannot dream of any mass adoption to happen. We need their social power, trustworthy profile (for some 😛), and financial impact on the crypto ecosystem. However, do all investors have these features? Not all of them...

The criticism on DBS, Paypal, and Fidelity has an underlying reason and, that's why we may question their shift from negative to positive but we cannot conclude that they will be harmful to the crypto market. By the way, they really decided to invest in BTC and other well-known altcoins then it is completely something positive. If it's the case, bygones are bygones

I want to leave news of DBS over BTC from 2017 to 2020 as an example.
Make your decision 😌
DBS 2020 vs DBS 2017

2nd Scenario: Beyond Maximalist View

When we consider the whole financial system in the world, it is not possible to compare our market capitalization with other instruments considering the current market cap. However, we all believe that the crypto market is full of opportunities and the volume + market cap will remarkably increase year by year.

Yet, I cannot support the claim that the crypto market could have outperformed (for some "beaten") the other markets but institutional involvement ruins it. It is kind of utopic to separate these investments and investors like black and white.

3rd Scenario: Do institutions dump the assets on us?

In the bigger perspective, everyone takes profit at a price to make gains and fundamentally that's the way markets work 😌 Yet, without solid evidence, it's difficult to conclude it. In this era, it may be better if we lessen our prejudice against new big players. Of course, they care initially about their well-being but it is the nature of investment and earning.

Lastly, the minor concerns:

In the previous years, we witnessed that people took profit for special days to spend their money but I do not think it has that much impact on the market. In terms of ATH, people who bought at nearly ATH now had an opportunity to take their money back but they are highly limited in numbers.

Aside from the points of view that are mentioned, the price was supposed to have a healthy correction before a new upward move. So, personal ideas might be influenced by the natural price action.

Consequently

I've been following several crypto influencers (both local and global) and care about their points of view. If you check the comments, you will realize that some crypto-people still have a fight with themselves to welcome new investors. Are they wrong? Absolutely not. There are some investors who have been crypto-friendly whereas the others had exactly opposite thoughts on Bitcoin and cryptocurrencies in general.

Yet, it is certain that even if the price is open to manipulations, Blockchain is unstoppable. There are thousands of people who would never stop developing the system. Let's look at the bright side and see people who will have an opportunity to learn more about the crypto-world thanks to the big players 😌

What do you think about the involvement of institutions?

Do you give credits to these skeptical PoVs of people?

Thanks for reading.