Mark Dow, a former IMF economist who manages a family office in southern California, has published a warning to Bitcoin (BTC) bulls, revealing a key support line that needs to hold to maintain the technical health of the leading digital currency. In a recent tweet, Dow shares that he still believes that Bitcoin’s chart is “beautiful,” despite […]
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Wealthbuilding Guru Says Bitcoin Hodlers Have a ‘Problematic Mindset’
Ramit Sethi, author of the bestselling “I Will Teach You to Be Rich” has taken a swipe at crypto hodlers, suggesting that their investment strategy is fundamentally faulty because it is based on emotional identity instead of rational analysis. In his opinion, the reason many crypto investors insist on suffering through bad market periods is
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Night of the Living HODLers: Halloween 2018’s Best Crypto Costumes
CoinDesk looks back at some of the best crypto costumes worn for Halloween 2018.
CoinDesk
The ‘Hodlers of Last Resort’ Saviors of Bitcoin
We have all listened to no-coiner acquaintances reasoning that, “Bitcoin is purely virtual, so the price could crash to nothing”. But why are they wrong? Who are the heroes that stop the drop in a bear market cycle? These, my friend, are Bitcoin’s Buyers of Last Resort.
What Goes Up…
The rise of bitcoin has depended on increasing adoption, occurring as more people discover, then desire, then buy bitcoin. If only this discovery was purely organic, based on word of mouth, and led to a steady accumulation of new users over time. The resulting appreciation in bitcoin price would be stable and sustainable.
Bitcoin (BTC): How Will Hodlers Cope With Bullish Pressure?
Chart for BTC/USD (1W)
Bitcoin (BTC) hodlers have held on to their horses during the bear trend. They have refused to give in to market pressure. In fact, most hodlers are holding at more than 70% losses. However, they have no intention of selling as they believe the price will eventually go up. In any market, there are different types of investors with different approaches. Hodling is also an approach and a very effective one. However, not all investors become hodlers for the same reason. This means that most of them do not necessarily have a plan. So, they are currently hodling because they do not want to sell at a loss. However, what are they going to do as the market starts to recover? To analyze this, let us discover the types of Bitcoin (BTC) hodlers.
‘HODLers Be HODLing’: 55% Of Bitcoin Sits in Multimillion Dollar Wallets
Over half the Bitcoin supply sits in wallets holding over 200 coins ($ 1.25 million), indicating faith among major bagholders remains, new research released September 17 suggests.
Diar: Investors ‘Keeping The Faith’
The data, compiled by cryptocurrency market research newsletter Diar in its latest weekly edition, echoes similar findings from industry researchers appearing throughout 2018.
Despite Bitcoin price 00 trending towards $ 6000 once again this week, there is little trace of panic selling, Diar noting largescale investors continue to show “very strong resolve.”
“Long-term investors are keeping the faith in the king of cryptocurrencies despite the bears market in 2018,” the newsletter comments.
China Round-Up: Scholar Advocates Permissive Regulations, 3 Million Estimated Chinese HODLers, Xiaolai Recording Leaks
In recent Chinese cryptocurrency news: a prominent scholar has advocated that China adopt a permissive regulatory apparatus, drawing influence from Japanese and U.S. legislation. Research conducted by the International Monetary Institute at Renmin University of China has estimated that the number of Chinese bitcoin investors exceeds 3 million, and an audio recording of famed bitcoin millionaire, Li Xiaolai, giving a scathing appraisal of several leading altcoins has been leaked.
Also Read: Huobi Launches in Australia Offering 10 AUD Pairs
Flash Transfer: Bitcoin Hodlers Dumped $30 Billion Since December
Leading crypto research firm, Chainalysis, revealed staggering wealth transfer numbers, as reported by legacy news outlet Financial Times, concerning bitcoin core (BTC). From its price high in December of last year through April of 2018, BTC hodlers (supposed longer term investors) dumped $ 30 billion onto the market, shedding about half their collective positions just in December. The basic facts are sure to enliven debate regarding BTC’s ultimate function, be it as a ‘store of value,’ medium of exchange, or mere speculative asset.
Also read: Fidelity Investments Hints at Entering Cryptocurrency Exchange Space
Will the Real Crypto ‘HODLers’ Please Stand Up?
The volatility in crypto markets has been unforgiving, raising questions whether the long-term hold is still a good strategy, especially given that the market has seen an influx of participants that do not necessarily share the views of the original crypto pioneers.
The crypto market continues to test the resolve of true HODLers. The sea of red is now more or less a daily occurrence, and it is tougher than ever to separate “value” coins from “hype” coins. The positive correlation between the coins, which is what some investment banks warned about, is partly to blame – there is simply very little to differentiate between the coins. This is something that upcoming ICOs will have to learn to live with. But maybe there is another way…
BlockFi Gives Hodlers Another Option to Borrow Against Crypto Assets
Options for borrowing and lending with cryptocurrencies are on the rise. One of the latest start-ups to join the likes of SALT and Unchained Capital is BlockFi, a New York City–based startup that issues loans backed by bitcoin and ether to individuals, companies and institutions in 35 U.S. states.
Collateralization of cryptocurrency assets benefits retail borrowers by allowing them to hold onto their crypto assets rather than selling them in order to make large purchases, like buying a car. They can also save on taxes by borrowing against crypto assets versus selling them.