@thunderbolt564
Institutional investors' large-scale buying and selling of cryptocurrencies have both impact and stabilizing effects on market prices.
- **Impact**: Large-scale selling can flood the market with supply, rapidly driving down prices. Large-scale buying can boost prices sharply in the short term, increasing volatility.
- **Stabilizing effect**: As long-term and risk-averse investors, institutions can provide liquidity, reduce bid-ask spreads, and focus on high-quality assets, which helps stabilize prices in the long run.
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