🟡 If Big Companies Buy Altcoins Like XRP and HBAR, Will Their Price Increase? Analyst thinks Otherwise

Cryptocurrency analyst Jake Claver made statements about the cautious yet significant entry of institutional investors into the cryptocurrency market.

While retail investors often speculate that institutional participation in assets like XRP and HBAR will trigger major price swings, Claver argues that institutions are already deeply entrenched in the market and are operating with sophisticated strategies to maintain vigilance and stability.

Unlike individual investors who depend on public exchanges, institutional investors use Over-the-Counter (OTC) desks to execute large trades without triggering significant price movements. These brokers allow institutions to build significant crypto positions while keeping their activities out of the public eye.

Claver highlighted two key strategies that institutions use to optimize operations:

Time Weighted Average Price (TWAP):

This strategy averages out the price by spreading trades over a period of time, preventing sudden market spikes.

It is ideal for buying or selling millions in crypto without causing noticeable market disruptions.

Volume Weighted Average Price (VWAP):

An algorithm-based approach that times trades according to trading volume, targeting optimal market moments to secure better-than-average prices.

It helps institutions trade within certain price bands, buy on declines, and minimize slippage.

“For example, an institution investing $50 million does not make a single purchase,” Claver explains. “Instead, they spread the purchases out over days or weeks to avoid market volatility.”

One of the main reasons institutions prefer OTC desks is liquidity. Executing large trades on public exchanges can lead to large slippage, where the last purchase in a series costs significantly more than the first due to price increases.