• About
  • FAQ
  • Landing Page
Trade in crypto.com
Advertisement
  • Home
  • Bitcoin
  • Ethereum
  • Live coin prizes
  • Premium Partners
    • HUOBI: our choice for advanced trading
  • DeFi
  • Exchanges
  • Calendar
  • Contact us
No Result
View All Result
  • Home
  • Bitcoin
  • Ethereum
  • Live coin prizes
  • Premium Partners
    • HUOBI: our choice for advanced trading
  • DeFi
  • Exchanges
  • Calendar
  • Contact us
No Result
View All Result
Trade in crypto.com
No Result
View All Result

Bitcoin less volatile? Institutional investors are 1 factor

Robert (editor in chief) by Robert (editor in chief)
April 18, 2021
in Bitcoin (BTC), Statistics, strategies
0
Bitcoin Cryptocurrency exchanges
187
SHARES
1.4k
VIEWS
Share on FacebookShare on Twitter

When investing in Bitcoin it’s no surprise that the price of Bitcoin might be extremely volatile. Does the fact that more and more  institutional investors invest in Bitcoin have consequences for the volatility of the price? The policy of MicroStrategy might answer this question.

Table of Contents

  • What is MicroStrategy?
  • What’s the MicroStrategy Bitcoin trading policy?
  • To whom does this MicroStrategy Bitcoin trading policy apply?
  • Who is in charge of maintaining the MicroStrategy Bitcoin trading policy?
  • What does the policy actually say about trading in Bitcoin?
  • What does this policy say about volatility of the Bitcoin prize?

What is MicroStrategy?

MicroStrategy is a publicly held company. The shares of this company are noted at the NASDAQ exchange. As a result of this publicly trade-able ownership the company has to fulfill requirements as stated by the SEC (American Financial Authority). One of these requirements is that they have to fulfill compliance requirements. This means they have to trade and act in a responsible and ethical way.

Since MicroStrategy is the first company that is open about trading in Bitcoin as part of their asset management, there is relatively much public information about their trading strategies. With the public documents regarding MicroStrategy’s Bitcoin tradding activities we can provide you an insight in the way institutional investors are trading Bitcoin.

What’s the MicroStrategy Bitcoin trading policy?

One of the public documents is the MicroStrategy Bitcoin trading policy. In this policy the company formalizes corporate policies regarding trading in crypto on behalf of MicroStrategy.

To whom does this MicroStrategy Bitcoin trading policy apply?

One of the remarkable aspects of the policy is that the regulations are not only applicable to persons who are involved in trading on behalf of MicroStrategy (the so-called ‘Covered Persons’), but also to their immediate families and members of their households.

Who is in charge of maintaining the MicroStrategy Bitcoin trading policy?

According to the policy the company has appointed risk managers who are responsible for maintaining the policy and provide instructions and sanctions based upon the policy.

What does the policy actually say about trading in Bitcoin?

The core of the policy is the description of ‘Material Nonpublic information’. This is defined as follows:

“However, information should be regarded as Material Nonpublic Information concerning the Company’s holdings of or transactions
in BTC if:
• Such information has not been previously disclosed to the general public and is otherwise not available to the general public; and
• It is reasonably likely to be considered meaningful to an investor in making an investment decision regarding a transaction in BTC.

In the policy it is stated that the so-called ‘Covered Persons’ are not allowed to engage in in a transaction involving Bitcoin when the covered persons are in possession of such information. It is also prohibited tot trade in Bitcoin during a so-called non-trading period. This period will be determined and announced  by the compliance officer. During this time it is also prohibited for Covered Persons to tip anyone outside the organisation or trade in Bitcoin in private.

What does this policy say about volatility of the Bitcoin prize?

Not all crypto trading policies of exchange-listed companies are public, but, since they all are subjected to the SEC-regulations we can safely assume that comparable policies are issued within other listed companies such as Tesla. Therefore we can expect that when trading activities are lowering considerably and investors are trading less than expected without finding an explanation in technical or fundamental analysis, there might be a non-trading period announced or there might be material nonpublic information. This means that a large change in the possession of (one or more) institutional investors can be expected.

It also means that based on general market information, the volatility will be more predictable than before, since retail investors are more or less ‘warned’ that some big transactions are coming. In our opinion this will lead to less shock effects in the market and a more gentle price movement. Furthermore it turns out that there is a decision process and the compliance officers have to announce a non-trading period to the covered persons. Therefore chances of an ‘overnight’ sale or purchase will decrease.

As a retail investor you can analyse the change in active investors and volatility with on-chain metrics. Here you see an example of current active investors, as available in the paid subscription data of our partner Intotheblock.

Active investors in Bitcoin and volatility
The amount of active investors in Bitcoin (captured on the 17th of February 2021). Source: Intotheblock.io

As we discussed yesterday, these objective criteria are a good basis to trade in Bitcoin in uncertain market circumstances.

 

You can download the full MicroStrategy’s Bitcoin trading policy here.

Tags: Bitcoin (BTC)institutional investorsMicroStrategyvolatility
Share75Tweet47

Related Posts

Bitcoin price All time high 20-10-21

Bitcoin and crypto plunge on Russian action. What now?

by Robert (editor in chief)
February 24, 2022
0

As we all know, Russia took military action in the Ukraïn last night. Since then, Bitcoin and crypto prices have...

Jane Street crypto trading secrets revealed by Thomas Uhm

1st time: Jane Street crypto strategy. Learn to win now

by Robert (editor in chief)
February 16, 2022
0

One of our aims is to provide institutional insights for retail investors. Jane Street is such an institutional investor. For...

Elliott Wave Analysis technical analysis

The Elliott Wave Analyses for Bitcoin and crypto explained

by Robert (editor in chief)
January 27, 2022
0

The Elliott wave principle became prominent in 1935 after a startling prediction that the stock market would reach a new...

Bitcoin ETF Trading options

New Bitcoin trading product, regulators acknowledge market

by Robert (editor in chief)
October 26, 2021
0

The Bitcoin ETF seems to have opened up the market perspective. This is going on... Since the Bitcoin ETF introduction...

The Bitcoin crypto snowball

Bitcoin price lowers. 4 ways to profit from a crypto snowball

by Robert (editor in chief)
January 27, 2022
1

Now the Bitcoin price is going south we'll expect a crypto snowball. What is it and how to trade against...

Load More
  • Trending
  • Comments
  • Latest
Bitcoin and cryptocurrencies wrap up

How to trade Bitcoin in uncertain circumstances? 5 Tips

April 27, 2021
profitable Altcoins with high roi,, Ethereum (ETH)

5 steps to pick 100x roi Altcoins for investing [video]

March 9, 2021
CME-gaps all you need to know

CME-Gaps for Bitcoin: this is all you need to know

April 18, 2021
Trading bots cryptohopper

300.000 Trading Bots can’t be wrong…

March 13, 2021
Bitcoin Cryptocurrency exchanges

Bitcoin statistics: Simple and Exponential Moving Average

2
Bull-Flip, bears, bulls, Bitcoin volatility

Bitcoin volatility today? 5 lessons to be learned

2
The Bitcoin crypto snowball

Bitcoin price lowers. 4 ways to profit from a crypto snowball

1
Richard Branson ondersteunt Bitcoin met Space Travel

Richard Branson ondersteunt Bitcoin, accepteert het voor Space Travel

0
NFT Update

NFT update: 5 best sellers, porn star screw over and …

February 25, 2022
Bitcoin price All time high 20-10-21

Bitcoin and crypto plunge on Russian action. What now?

February 24, 2022
Jane Street crypto trading secrets revealed by Thomas Uhm

1st time: Jane Street crypto strategy. Learn to win now

February 16, 2022
crypto advertising Super Bowl 2022

Is Super Bowl crypto advertising profitable? Find out in 5

February 15, 2022

If you (want to) trade in crypto, accurate information is necessary. Therefore we provide you with the latest news, inside stories, analyses and live updates.

Categories (under construction)

  • About us
  • Banken en Beleggen
  • Beveiliging
  • Bitcoin (BTC)
  • Bitcoin ETF
  • Blockchain
  • Crypto exchanges
  • Cryptocrime
  • Cryptocurrencies
  • Cryptocurrencies algemeen
  • Cryptocurrency Exchanges
  • Cryptonews
  • DeFi
  • Editor's Pick
  • Ethereum
  • Ethereum (ETH)
  • NFT
  • Overheid en Politiek
  • Partners
  • Regulations & tax
  • Ripple
  • Ripple (XRP)
  • Sparen & Beleggen
  • Statistics
  • strategies
  • Technologie
  • Uncategorized
  • Wallets

Disclaimer:

Please note that our site does not provide any financial advice. The statistics and information shown are solely provided as a possible source for your own research on (investing in) crypto and/or for educational/entertainment purposes. Despite our efforts to present information in the right and timely manner, we will not accept any responsibility for any shortcomings in the data and/or information provided. Furthermore, please be aware that this site uses affiliate links. This means we might earn a contribution in the costs of operating this site and providing free information if you decide to click on (one of) the links issued.

Site management:

Omnimedia Events (on behalf of third parties), Winthontlaan 200, 3526 KV Utrecht, The Netherlands, contact(@)tradeincrypto.com

Legal links:

  • General terms and conditions
  • Privacy policy
  • Cookie Policy
  • Disclaimer
  • Imprint

We understand you agree with the terms and policies mentioned above by using this site. If not we kindly ask you not to use our services anymore. Please check our policies regularly since they may vary from time to time.

  • About
  • Crypto prizes live
  • Contact us

© 2018 - 2023 Omnimedia Events

No Result
View All Result
  • Home
  • Crypto prizes live
  • Crypto exchanges
  • Premium Partners
    • Advanced trading: Huobi Exchange
  • DeFi: Decentralized Finance
  • Crypto calendar

© 2018 - 2020 Omnimedia Events, Winthontlaan 200, 3526 KV te Utrecht.

Sign up for our free daily TradeinCrypto Update

Don't miss any news, backgrounds, analysis, guides and many more info. Subscribe for free now: 
SUBSCRIBE!
Give it a try, it's free and you can unsubscribe anytime.
  • bitcoinBitcoin(BTC)
    $27,897.000.590% 24H
    BITCOIN
    24H : 0.590%
    Volume : $14,466,563,893.00
    Marketcap : $539,445,667,539.00
  • ethereumEthereum(ETH)
    $1,766.380.260% 24H
    ETHEREUM
    24H : 0.260%
    Volume : $8,514,637,429.00
    Marketcap : $212,903,577,086.00
  • tetherTether(USDT)
    $1.00-0.55% 24H
    TETHER
    24H : -0.55%
    Volume : $23,428,536,584.00
    Marketcap : $79,133,218,606.00
  • binancecoinBNB(BNB)
    $328.290.830% 24H
    BNB
    24H : 0.830%
    Volume : $496,185,669.00
    Marketcap : $51,849,657,175.00
  • usd-coinUSD Coin(USDC)
    $1.000-0.49% 24H
    USD COIN
    24H : -0.49%
    Volume : $3,435,905,718.00
    Marketcap : $33,873,231,195.00
  • rippleXRP(XRP)
    $0.454-0.15% 24H
    XRP
    24H : -0.15%
    Volume : $1,508,543,081.00
    Marketcap : $23,193,633,650.00
  • cardanoCardano(ADA)
    $0.353-1.34% 24H
    CARDANO
    24H : -1.34%
    Volume : $276,955,629.00
    Marketcap : $12,372,589,863.00
  • staked-etherLido Staked Ether(STETH)
    $1,766.170.360% 24H
    LIDO STAKED ETHER
    24H : 0.360%
    Volume : $12,704,720.00
    Marketcap : $10,362,883,544.00
  • dogecoinDogecoin(DOGE)
    $0.074-1.71% 24H
    DOGECOIN
    24H : -1.71%
    Volume : $374,535,977.00
    Marketcap : $10,252,765,008.00
  • matic-networkPolygon(MATIC)
    $1.090.310% 24H
    POLYGON
    24H : 0.310%
    Volume : $357,025,482.00
    Marketcap : $9,915,973,827.00
  • binance-usdBinance USD(BUSD)
    $1.000-0.53% 24H
    BINANCE USD
    24H : -0.53%
    Volume : $3,366,220,617.00
    Marketcap : $8,022,511,721.00
  • solanaSolana(SOL)
    $20.68-0.60% 24H
    SOLANA
    24H : -0.60%
    Volume : $328,400,564.00
    Marketcap : $7,942,415,081.00
  • polkadotPolkadot(DOT)
    $6.000.060% 24H
    POLKADOT
    24H : 0.060%
    Volume : $130,208,515.00
    Marketcap : $7,296,977,040.00
  • litecoinLitecoin(LTC)
    $92.40-1.44% 24H
    LITECOIN
    24H : -1.44%
    Volume : $627,222,618.00
    Marketcap : $6,716,459,373.00
  • shiba-inuShiba Inu(SHIB)
    $0.000011-0.24% 24H
    SHIBA INU
    24H : -0.24%
    Volume : $153,676,267.00
    Marketcap : $6,240,648,457.00
  • tronTRON(TRX)
    $0.064-0.96% 24H
    TRON
    24H : -0.96%
    Volume : $335,761,116.00
    Marketcap : $5,863,687,843.00
  • avalanche-2Avalanche(AVAX)
    $16.91-1.08% 24H
    AVALANCHE
    24H : -1.08%
    Volume : $151,360,714.00
    Marketcap : $5,507,991,403.00
  • daiDai(DAI)
    $1.000-0.19% 24H
    DAI
    24H : -0.19%
    Volume : $103,925,587.00
    Marketcap : $5,232,804,706.00
  • uniswapUniswap(UNI)
    $5.750.170% 24H
    UNISWAP
    24H : 0.170%
    Volume : $56,281,046.00
    Marketcap : $4,334,566,417.00
  • wrapped-bitcoinWrapped Bitcoin(WBTC)
    $27,931.000.590% 24H
    WRAPPED BITCOIN
    24H : 0.590%
    Volume : $117,099,107.00
    Marketcap : $4,192,333,242.00
Manage Cookie Consent
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
Manage options Manage services Manage vendors Read more about these purposes
View preferences
{title} {title} {title}