How do institutional buying moves, like Harvard’s increased Bitcoin Trust stake, contrast with retail investor reactions?
Why is this the correct answer?
Institutional buyers often use a long-term strategy, steadily adding to their holdings even when prices drop. This patient accumulation contrasts with retail investors, who may buy at highs out of fear of missing out and sell during rapid declines. Understanding this difference helps beginners see why institutions can weather volatility better, while retail traders may react emotionally to short-term price movements. This behavior explains why institutional moves can be a sign of confidence despite bearish sentiment from smaller traders.
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