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Wall Street is moving into the bitcoin market. So why aren’t prices rising?

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  • Well some would say that banks may not want the price rises just yet. I remember during a trading session last year when Bitcoin had one of its many 50% retracement periods for a couple months where Bitcoin in particular fell to a low of around 2900-3000 USD where it stayed for a few weeks to a month

    Well some would say that banks may not want the price rises just yet. I remember during a trading session last year when Bitcoin had one of its many 50% retracement periods for a couple months where Bitcoin in particular fell to a low of around 2900-3000 USD where it stayed for a few weeks to a month. If you look at volume indicators at some of the lowest points of that trading period you see that once it hit a bottom out point in 15 minutes 110-150 million USD in liquidity entered the market as a massive whale bought in. Now that could possibly be one huge crypto whale investor, or a slew of automated trade orders set for a price target, but the size of one massive push up may also suggest institutional investors. That buy in kicked off a short bull run and then stabilization. What people aren’t realizing is that some institutions and banks and hedge funds may not want the price to sky rocket yet. The smart thing to do is to squeeze the market, ride psychological triggers until you break the spirit of weak handed investors and then leave people holding the bags with price manipulation. And since crypto markets are not mature markets news events, even big buy ins can really rock the boat. Equities markets get pounded daily by FUD and false news or manipulative tactics but due to its sheer volume of trading and size, as well as a lot of ETFs and automated index funds asleep at the wheel, only fluctuates slightly. Some institutional investors, banks and wealthy are most likely already in the crypto market, and are using financial clout to manipulate markets. A rising price doesn’t always indicate the trend that is wanted by an institutional investor.

    I think also secondly that the instituons that are in on the Bitcoin futures market from the CFTC are placing downward price pressure on the price of the Bitcoin and in consequence the rest of the crypto market. That’s what a futures market tries to sort out, long term price potential based on short and long positions on an asset or commodity, in this case that equilibrium pressure is being placed upon the in the past undeterred price increases on Bitcoin.

  • I think it comes down to whether or not the financial institutions can bring any legitimacy to the market that would temper regulators.

    As it stands, they still make up a small percentage of overall crypto trading volume. Perhaps the majority feel that such moves into the market will only attract more

    I think it comes down to whether or not the financial institutions can bring any legitimacy to the market that would temper regulators.

    As it stands, they still make up a small percentage of overall crypto trading volume. Perhaps the majority feel that such moves into the market will only attract more attention from regulators—as it’s theoretically breaking the Volcker Rule (prohibiting banks from making speculative or risky investments in the aftermath of the financial crisis).

  • There is limited legitimacy to the bitcoin market. Blockchain has more legitimacy, and hence perhaps why limited price movement on the upside has occurred.

  • There is interest in the market, just not enough conviction. Once institutional money starts rolling in, we will likely see a steadier and consistent trend. We’re also talking about a market that’s doing about 20% of the daily trading volume, in USD, compared to Q4 2017 — lots of opportunity for position

    There is interest in the market, just not enough conviction. Once institutional money starts rolling in, we will likely see a steadier and consistent trend. We’re also talking about a market that’s doing about 20% of the daily trading volume, in USD, compared to Q4 2017 — lots of opportunity for position paring and readjustment ahead of the slow summer months.