@depot
Institutional investors can significantly reduce volatility by bringing stability and liquidity to the crypto market through large-scale investments. Their entry often boosts confidence in the market, attracting more retail investors. However, when institutions liquidate their positions, it can lead to sharp price declines due to the sudden sell-off of substantial amounts. Their market activity can also signal legitimacy, influencing both short-term price movements and long-term trends as they bring more structure and long-term capital to the space.
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