https://bitcointreasuries.orgPlease visit the link above first before reading anything here.
After visiting there, all of you can see that how institutional investors are 'blindly' collecting bitcoins and adding more and more btc to their treasuries. I am too much curious and confused to understand how they will manage to sell all of their btc if some day a big dump arrives, or if their investors start to take out their investments and ask them to sell the btc and pay them. For an institution to pull out their btc from their wallets and sell, there needs to be an institution or a very big whale on the other hand to buy all that and they will also need that much big liquidity for the same.
Now, a very common logic, which institution would like to buy btc at $100k or even at million dollars when the seller institution is already taking out big profits in fiat by selling their btc to the buyer Institution? Won't that btc be coming with an impermanent loss if the price dumps later? Do you think there is any point where a stagnancy of liquidity or financial crunch may affect the price of btc so badly that it can reverse down like it did in the 2018 crash?
I agree that institutions who invest millions into bitcoins won't be able to just sell them on an ordinary exchange. Large sell orders would just make the price fall down quickly. For such kind of transactions there would probably be over the counter transactions among large institutions. Such kind of trades are already be done with stock portfolios. So doing it with bitcoins is fine. You don't need to expect falling prices to sell your coins. It might be that the company just need money to invest into a new plant or project.