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Financial Institutions Don't Look at Price When They Enter Bitcoin, BlockStream CSO Says, Here's Why

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Tue, 01/05/2021 - 13:02
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Yuri Molchan
CSO at BlockStream, Samson Mow, has shared how financial institutions behave when they make a decision to purchase Bitcoin; they do not chase a certain price
Financial Institutions Don't Look at Price When They Enter Bitcoin, BlockStream CSO Says, Here's Why
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Samson Mow, Chief Security Officer at BlockStream, has published a tweet in which he describes what happens in the heads of institutional investors when they decide to grab some Bitcoin and they do not target any particular price.

"Institutions don't decide to buy Bitcoin at a certain price"

Mow explained that financial institutions do not go for the king crypto at a certain price. When they decide to enter Bitcoin, this means that they plan to obtain a certain amount of BTC in U.S. dollars.

As a rule, this sum equals hundreds of millions, the expert says. When institutions make that decision and decide on the USD amount they want to invest, they just accumulate BTC over time regardless of any price changes.

BTC
Image via Twitter

Mow shares list of institutions planning to buy Bitcoin this year

Earlier, the BlockStream CSO reminded the community about intentions to acquire Bitcoin made publicly by certain hedge funds.

They plan to allocate or have already allocated $100 million-$1 billion into BTC.

On his list, Samson Mow mentioned One River, Guggenheim, SkyBridge, Ruffer and MassMutual.

Grayscale Investments also keeps exposing its institutional customers to Bitcoin, Ethereum, XRP and other top cryptocurrencies.

BTC
Image via Twitter

As reported by U.Today earlier, SkyBridge Capitalhelmed by U.S. financial expert Anthony Scaramuccihas launched a Bitcoin fund with $310 million in capital.

Related
JPMorgan Expects Bitcoin to Reach $146K After Crowding Out Gold

Bitcoin recovers after a 16 percent fall

On Jan. 4, the world's biggest cryptocurrency suddenly demonstrated a 16 percent decline, falling from the $32,400 area to below $30,000.

One of the factors for the sudden price drop is believed to be a gargantuan liquidation of Bitcoin futures worth $190 million on the Binance exchange.

Experts also say that the decline occurred because of Asian traders.

By now, Bitcoin has recovered and is changing hands at $31,789, as per data from CoinMarketCap.

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About the author

Yuri is a crypto journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future in many of its aspects. ‘Hodls’ major cryptocurrencies and has written for multiple crypto media outlets. 

His articles have been quoted by such crypto influencers as Tyler Winklevoss, John McAfee, CZ Binance, Max Keiser, etc.

Currently Yuri is a news writer at U.Today and can be contacted at yuri.molchan@u.today.