Have 87% of institutional investors left the bitcoin market and not come back?


Now I have another question, are they planning not to enter at all again? If that is the case, we are in some serious trouble. Retail investors alone will never be able to maintain the current market cap of all cryptocurrencies.

As per a recent report by  grayscale, 87% of Bitcoin investments in 2020 came from institutional investors. It was a good sign as in every stable financial market the dominant players are not retail investors. 

It seems that they have unloaded some of their holdings during the last all time high as well, which may have contributed towards the recent price crash.

Apparently now they are still waiting for some reason to step in even with the BTC trading at bargain prices. My simple volume based analysis yesterday also indicated the fact that they have not entered the market with their full potential yet.  

Now I have another question, are they planning not to enter at all again? If that is the case, we are in some serious trouble. Retail investors alone will never be able to maintain the current market cap of all cryptocurrencies. 
 
Instead of jumping into conclusions and panicking, let's see the attached chart where the total amount of stable coins held in crypto exchanges are plotted against the time.
 

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We can clearly see that it has increased to 5 billion and then to 15 billion within about 10 months. I do not believe it's the money of retail investors at all. It has to be institutional investors and most importantly their money is still held in crypto exchangers. 
 
If they are not planning to invest in crypto again, why do they keep their money in exchanges? Therefore, we can still be positive despite all uncertainties shown in the price action (which I believe is mere market manipulation to accumulate more crypto at bargain prices by smart money.)
 
Further, at the end of the chart there is a sudden drop in all exchange stable coin reserves and it may require another deep dive probably tomorrow. 
 
 
Not financial Advice, but analysis only.            
       
Dr. Buddika Adikari          


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