Market Sentiment Has Changed

By xuanling11 | Crypto Learning | 6 Dec 2021

Charlie Munger does not like Bitcoin at all. Who really cares about his opinion anyway. A century-old investor has been left out from the current digital trend and complaint about it. The crypto market sentiment has been changed since last Friday’s sold-off. Institutional investors can influence the crypto market as a result of the fast adoption.


Here is a 1 min summary of the article if you want to skip the reading.

Spot Price vs. Derivatives

There is a major investment in crypto derivatives rather than the spot price. Bitcoin future is one of the examples of derivatives products that heavily impact the price action on Bitcoin. Not to mention, it is the only ETF that the SEC has been granted to strategically restrict how Bitcoin may move on its future price. Other countries are also adopting spot price ETF that further increases the trading volume on each crypto asset. 


Volatility of Crypto

Volatility is one of the crypto’s features. Investors love crypto assets because of their high volatility with high rewards rather than retail investors holding assets for long periods of time. Institutional investors have more tools to include crypto assets as their portfolios and improve their performance. Retail investors tend to hold crypto assets as speculative financial hedge instruments for uncertain futures. Different aspects of crypto assets may yield a very different result of investments.


Crypto Assets Are More Stable with Supports

The way institutional investors purchase crypto-assets can create a large support level for them to enter and exit the market because of their influential large amount of money to enter the market. While retail investors may blindly enter the market and exist without any protections.


Correction of 50% May Harder to See 

Since April 2021, Bitcoin has had a major correction of more than 50% price down until it fully recovered in October. Such a bearish market may be harder to see in the coming years because institutional investors are in control of the direction of the crypto market. 


Crypto Whales are Diminishing

No to mention that crypto whales are extinct. Instead, there are more institutional investors to replace crypto whales who are more conservative on asset management and profit-taking rather than based on FOMO and speculative information.


Future of Crypto Movement

The crypto will be still volatile but less in its correction range. 50% of corrections will be less likely than each 20% correction. As crypto enters into the mainstream, its valuation may continue rising at a steady pace.


In Conclusion

It is not good or bad for institutional adoption of crypto. It is only how you view such adoption as an opportunity for investors to continue investing assets and make a profit rather than gambling their money. Either way, it is a choice of lifestyle.

This article is also published in Cryptologist as parnership publication.
Photo by Aziz Acharki on Unsplash
Note: the post was shared on multiple platforms.

Check out here from Odysee and join here

You can refer my previous article lists here
Digital Commodities- the Unlimited Resources of Commodities Has Born
Universal Income in Crypto Way
DeFi 1.0 is Officially Dead - Welcome to DeFi 2.0
NFT Has a New Purpose
How Many Ads Are Too Much - Floki Inu Ads Got Backfire
Metaverse - Second Life Era
Bitcoin ATM Adoption and Its Potential Security Vulnerabilities
When Corporations Are Running By Everyone
The Fundamental Value Is Irrelevant
Coinbase At Huge Reputation Crisis
CBDCs' Flaw Design
Regulations Start Hitting Crypto Exchanges
From Bitcoin Standard To Zero-Knowledge Proofs - Decentralization 2.0
Shiba Hits 1 Million Users (Army) Milestone: What is Next?
How To Avoid Crypto Scammers
Crypto Philanthropy
Shiba Game - When Meme Meets Metaverse
Twitter CEO Steps Down - A Full-Time Bitcoiner
Change of Macroeconomy Landscape
CBDC Is Losing The Game
Crypto AWS
Doge The Future
El Salvador's Bitcoin
Disclosure: The article was written by a delusional author who is possibly a nut job without any questions whatsoever about expertise in the subject matters. You should not believe any words this author wrote or you may experience similar symptoms or even possibly become a nut job.

How do you rate this article?



Check out

Crypto Learning
Crypto Learning

All article was written by a delusional author who is possibly a nut job without any questions whatsoever about expertise in the subject matters.

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.