Here Is Why Institutions Left Retail Investors And Crypto Market With A Bloody Aftermath

The price of bitcoin is currently about 50% down from its 2021 highs, which were reached around the time of Coinbase’s stock market launch. The same organizations who drove up prices in the first place, according to statistics, put a halt to the surge fuelled by institutions finally going into crypto.

Here’s why, despite helping to drive prices up in the first place, institutions have left the crypto market and individual investors in a bloodbath.

Institutional Buying Causes Bullish Breakout: Crypto Is No Longer A Fad

Until recently, the cryptocurrency market was thought to be a passing craze, or a separate sector from traditional finance linked with malware, the dark web, and tax evasion.

Retail investors have been flocking to Bitcoin in the hopes of upsetting traditional banking, and it’s starting to work. Institutions, major banks, and even governments can no longer ignore technology, and many are embracing it in their own unique manner.

Institutions profited at local highs, according to data | Arcane Research: The Weekly Report is the source of this information.

National governments are contemplating central-bank issued digital currencies, and institutions are finally buying, selling, and trading Bitcoin, according to PayPal and other payment companies.

These high-net-worth individuals, who have decades of market expertise and a variety of strategies at their disposal, were critical in driving prices up to $60,000 a coin. Regrettably, the evidence shows they were also involved in the selloff that resulted in a bloodbath among ordinary traders.

Institutional Selling Can Be Devastating on The Other Side Of Bitcoin

Institutional investors are frequently referred to as “smart money” because of their ability to detect trends early on, or possibly because of their scale, they are the ones driving the trends.

Institutions aren’t the type of traders that sit behind a three-monitor setup with a plethora of cryptocurrency charts. Hedge funds and other financial institutions have teams specialized in technical analysis, fundamental analysis, macroeconomics, and other topics. Strategies are created based on their combined intelligence.

They invest in assets that they expect to perform well, and they benefit when gains are available. Institutions do not “HODL” coins with the hopes of making hundreds of thousands of dollars. Instead, they notice that they’ve gained hundreds of percent in only a few months and take gains before regular investors catch on.

Bitcoin may have reached $1 trillion in market capitalization, but cryptocurrency remains speculative, susceptible to attitude shifts, and very volatile. Institutions were aware of all of this and took some risk off the table before the market crashed – which it did.

According to on-chain statistics, realized losses were at an all-time high, and as the rest of this data indicates, institutions weren’t the only ones in the red.

Retail cryptocurrency investors hoped for the day when institutions would drive up the price of the limited-supply commodity, and now that day has arrived. What they didn’t anticipate was the chaos that would ensue once these major players began selling their coins.