The Bitcoin Smart Money FOMO Is Real
Dark pools have significantly shifted the dynamics of the stock market. Dark pools are privately held pools for trading non-regulated securities which are unavailable to the general investing public. Essentially, dark pools were designed to facilitate private investor block trading. The thing about dark pools are they aren't immediately transparent when a transaction occurs. Meaning that buy or sell order isn't immediately visual on the level 2.
The crypto over the counter (OTC) market works very similar to the dark pools on the stock market. When the Smart Money is buying large blocks of bitcoins, they use the OTC market as to not drastically impact the price of bitcoin. Their goal is when they buy or sell to remain invisible, if possible.
Institution-focused Coinbase Pro exchange registered an outflow of over 35,000 bitcoin (BTC, -0.83%) worth more than $1 billion early Saturday, according to data source CryptoQuant.
The large outflow comes a day after 12,063 coins left the exchange and represents institutional FOMO (Fear Of Missing Out) buying, according to Ki Young Ju, CEO of the Korea-based blockchain analytics firm CryptoQuant.
Massive outflows from Coinbase Pro usually end in Coinbase's cold wallets for custody, which is directly integrated with the exchange's over-the-counter (OTC) desk. Institutions typically transact over-the-counter in a bid to avoid influencing the spot market price
We also got word that a Singapore hedge fund, Three Arrows Capital bought some $1.3 billion worth of stock traded bitcoin through, of course, Grayscale.
Despite Bitcoin falling 20% on Monday, of course the Smart Money was there to pick up the pieces at that ugly looking daily demand at the $28,000 level.
Rest assure all dips will be bought in 2021 as the Smart Money FOMO is real.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.
Posted Using LeoFinance Beta
This thing is so wild it pushes the day trading concept further, day&night trading.
You can't afford to let your eyes watch something else for a minute :D
Posted Using LeoFinance Beta
It's true sometimes we have more movements on weekend and volatility is the reason for day trading. 24/7 markets are good and bad at the same time, time for your own become more and more important.
Posted Using LeoFinance Beta
Yes this kind of volatility is like the perfect playground for currency day trader. To be honest I’m not up to the task and prefer longer timeframe trades.
Posted Using LeoFinance Beta
Yes, this way of playing is unfortunately becoming rarer and rarer in the various markets and when it is, it has to be exploited. The future in bitcoin is ideally suited for this, in my opinion.
Posted Using LeoFinance Beta
Future is something I never tried yet. I might give a look at it then ;)
Posted Using LeoFinance Beta
I don't see how people day trade bitcoin...the successful ones are making a boat load of money.
Posted Using LeoFinance Beta
It's beyond me as well, but sure they deserve some credit for being successful in such a volatile and competitive environment !
Posted Using LeoFinance Beta
I don't believe the dips will be as deep as in 2017. Institutions are much stronger hands than retail investors. On the supply side, there will be sellers and the more as the price climbs. Early adopters or people like us who have front run the institutions will sell.
Posted Using LeoFinance Beta
Totally agree @shtup.
Posted Using LeoFinance Beta
I've seen revisions of $100K BTC by the end of 2021 shifted up to about $250K. I've also seen a report that about 78% of BTC is illiquid, people are just holding it. So, the institutional FOMO is real.
Posted Using LeoFinance Beta
Every week, we hear Smart Money taking X amount of Bitcoin off exchanges, yes the FOMO is really real.
Posted Using LeoFinance Beta
hopefully that happens same with alts especially hive.
We might have to wait for alt season.
Posted Using LeoFinance Beta
That's why they call them smart money, and that's why smart money are using OTCs to buy crypto. I guess once they'll dump they will do that on open markets.
Posted Using LeoFinance Beta
I don't see them dumping for a while...several yrs.
Posted Using LeoFinance Beta
So many Bitcoin predictions ahead. Fortunately, they are all positive (so far).
Posted Using LeoFinance Beta
That's is good part @wiseagent, a no lose situation.
Posted Using LeoFinance Beta
I enjoyed reading this. You may be right. Or not. There are not only institutional entities, but in Asia also there are many individuals selling and buying using OTC trading. Many exchanges that are unknown to us are very popular in their own countries and they use OTC.
I must admit myself that i sent a symbolic £1000 from crypto to my bank account, just because is too high. And i put 20% of my portfolio in stablecoins. Hope it works for the best and let me buy some dip if it ever happen again.
Posted Using LeoFinance Beta