Why institutional money can come in and still not affect crypto prices

in #bitcoin6 years ago (edited)

Shocker right? Nor it doesn't make sense... But it the truth. 500 million dollars can be invested in Bitcoin without affecting the price... How? OTC markets. OTC markets are like you hold 1000 btc. You want to sell it. You could sell it in the open market but then you could crash the price bc of the huge amount you hold. However if you go to a broker they can hook you up to me where I'll buy the 1000 btc for a set price probably only 1% less the market price. However apps that sell you btc like Cash app also do this as well. They prebuy btc from a boker and sell at a more stable price to it users, Coinbase sells it btc by acting as a trader for them hence the fees. However there is only so much btc that can be bought in OTC markets. Sooner or later, the only way to buy in will be open markets. The question is when?


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