The cryptocurrency market capitalization has experienced a huge 65% nosedive from an all-time-high of 700billion USD to a little above 200billion USD. There are numbers of factors that contributed to the late 2017 - early 2018 bull run but it is undeniable that institutional investors played a big role in it. Asian markets dominated with many investors from Seoul and Tokyo followed by US traders. The present bear market trend does not mean that the big players have left, it only means that more investors are needed.
Institutions and enterprises are beginning to recognize how much potential cryptocurrencies have and they are testing the waters so to say, through hedge funds and new blockchain technologies.
The big market players account for a small percentage of the early crypto adopters who made unbelievable profits from cryptocurrencies. Prices may be down right now but bitcoin is still well above its price in early 2017. 500% to 3000% returns on investments are attractive and attainable through crypto, hence there is no doubt that institutional investors are looking to take part in the action.
Basically, prices shoot up when new money enters the crypto market. Institutional investors usually have lots of funds at their disposal so their presence will definitely be felt.
Also, some people have refused to join the crypto wagon due to security concerns, lack of government regulations and crypto bans in some countries. If a big company with a very high net-worth announces any move that would mean investing in crypto, the skeptics would get interested and would likely jump onboard out of fear of missing out. This would result in new money which is just what the crypto market really needs.
The truth is institutional investors are entering the crypto market and they are not going through crypto exchanges, they are going through OTC markets.
High net-worth individuals and institutions are using the OTC market to process trades that exceed $100,000, which based on the current price of Bitcoin at $6,500 is around 15.38 BTC - Bobby Cho, the global head of trading at Cumberland, a Chicago-based cryptocurrency trading company. source
Cryptocurrency exchanges cannot handle the liquidity they need and even if they could, it will have a huge impact on the short term price movement of cryptocurrencies.
Trade.io OTC Trading Desk
Trade.io is a cryptocurrency based financial services firm that offers various investment options such as liquidity pool, crypto exchange platform, ICO consulting services and OTC trading desk. Trade.io OTC trading desk allows traders to buy crypto in bulk with $1000 USD and above.
Through Trade.io OTC trading desk, institutional investors can reduce the impact of large trades on short term price movements while properly managing risks. Trade.io uses a large network of counter-parties to connect buyers and sellers of large blocks of cryptocurrency. Investors can also decide the method and execution time of their trades. Investors also get to keep their transactions confidential on Trade.io OTC market. Trade.io offers real-time communication with market news and technical levels.
Trade.io has access to liquidity providers worldwide hence they are capable of handling trades worth millions of dollars. Trade.io clients can also deal directly with the trading desk through a personal account manager that will provide support where and when they need it. Trade.io provides fast settlement and commission free non-limit orders for their OTC clients and they support trades in 14 major cryptocurrencies including BTC, ETH, XRP, BCH, EOS.
Cryptocurrency needs more institutional investors to kick off a bull market trend because new money means increase in market cap and crypto prices as well as more attention and increased adoption. There are lots of opportunities for institutional investors to invest such as hedge funds, new blockchain projects, etc. However, most crypto exchanges cannot handle the liquidity that these high profile investors need therefore they choose to go through OTC markets. Are they entering the market now? Yes, through OTC markets. It is only a matter of time for the prices to reflect this.
Trade.io offers a competitive OTC trading desk that can match the liquidity institutional investors need in good time. They also have over 40 years of experience in trading and risk management in various assets. They also have a tiered commission structure that allows clients to save money with each transaction through their commission free non-limit orders.
Please visit the website or social handles for more information on Trade.io:
Website: https://trade.io/en
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https://trade.io/en/ico-services
https://trade.io/en/investments
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