Bitcoin
Here’s What To Do Right Now If You Hold Bitcoin
The bitcoin and cryptocurrency space is a tough place to be right now. At time of writing (mid-morning US on Friday), bitcoin is down around 30% from highs and 15% on the last twenty-four hours alone. Much of the other (what we might call) majors are following suit – Litecoin is down 18% on the last twenty-four hours, Ethereum is down just shy of 20% on the same timeframe and Bitcoin Cash is down a massive 26%.
Bitcoin Chart
The major news media outlets, the same ones that have been pitching bitcoin as a potential bubble over the last few weeks – CNBC, Financial Times, other top-tier outlets – are patting themselves on the back and calling for the end of the bubble and, in turn, the space as a whole.
People are panic selling and contributing to the dips, driving price down further as speculative volume exits towards the so-called safe havens.
So what does all this mean and – more importantly – what should traders and investors with an exposure to the cryptocurrency space do about it?
Our answer is simple – nothing.
Many reading will likely already be familiar with the term HODL. For those that aren’t, it dates back to a post that was published on a popular bitcoin forum by a user who misspelled the world hold. Since then, it’s been adopted by the community as referencing the idea that you should buy and hold, whatever happens.
And there’s an incredible degree of justification for this strategy. Those who HODL’d through the last few years are, in all likelihood, sitting on millions of dollars of bitcoin right now.
But here’s a misconception – that this money was easily made. It wasn’t. HODLing sounds easy, but it’s not. We’ve seen probably nine or ten major corrections over the last seven years in this space, and when we say major we’re talking 25%, 30% plus. Every time one of these corrections happens, a portion of those with bitcoin holdings bail out of their positions on expectations (and, as is generally the case, expectations fueled by the mainstream media calling for the end of the bitcoin bubble). Bailing out, of course, is the easy option.
HODLing, on the other hand, is the hardest thing to do. It means you’ve got to put aside the general consensus on the assumption that you know something that the vast majority of other people don’t. That’s a big claim.
It’s one that’s done many people very well over the last few years, however, and it’s one that will continue to do many others well (the ones with a strong disposition) as things play out and this correction turns around.
We’re not saying be foolhardy, of course. If converting 20% or even 30% of your coins into fiat is going to be a life-changing windfall and allow you to be financially secure, by all means, go ahead (it would sort of be foolish not to).
What we are saying, however, is that this is nothing new in this space and the only real difference this time around is that bitcoin has become big enough (and, in turn, has entered into the conscience of the general public to a high enough degree) for the above mentioned big name outlets to care about the correction.
Many of us in this space have sat through this sort of thing before and we’ll sit through it again before long. It’s all in the game.
So there we go. Do nothing. Stay the course. HODL. Or, if you’ve got some spare capital lying around, pick up some cheap coins on the dip.
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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.
Image courtesy of Global Coin Report Archives/Flickr
Bitcoin price dumped hard on Monday, briefly slipping below $41,000, erasing gains recorded in the previous week. The premier cryptocurrency seems to have exhausted its recent rally propelled by industry vulnerabilities. At the time of writing, the world’s largest cryptocurrency was trading slightly lower at $41,385. Bitcoin’s total market cap has dipped by 2% over the past day, while the total volume of BTC tokens traded over the same period climbed by 58%.
Fundamentals
Bitcoin price has been facing retracements and a rollercoaster over the past few days after recently rocketing to a 20-month peak. On-chain data has suggested that many investors used the opportunity to take some profits, leading to a decline in the asset’s price.
Bitcoin’s price slump is mirrored in the wider crypto market, with the global crypto market cap decreasing by 1.85% over the past 24 hours to $1.55 trillion. The total crypto market volume has increased by 32% over the same period. The Crypto Fear and Greed Index has plunged from a level of extreme greed to a greed level of 70, suggesting a decline in risk appetite.
Ethereum, the largest altcoin by market capitalization, is currently trading at $2,167, down almost 3% for the day. Meme coins have been hit hard by the market slump, with Dogecoin and Shiba Inu down by more than 4% over the last day.
Last week on Thursday, cryptocurrency experts took notice of…
Bitcoin price edged lower on Thursday despite optimism in wider markets on the back of the Fed’s interest rate decision. The flagship cryptocurrency has been consolidating above the critical level of $42,000 after briefly topping $44,000, its highest level in 20 months. Bitcoin was trading 0.71% lower at $42,569 at press time. BTC’s total market cap has increased by more than 3% over the last day to $832 billion, while the total volume of the asset traded over the same period jumped by 22%.
Economic Outlook
Bitcoin price has been trading sideways over the past few days, suggesting a pause in its recent rally towards $45,000. The premier cryptocurrency has decreased by 4% in the past week but remains 15.22% higher in the month to date. The digital asset has staged a significant recovery this year after a torrid 2022 in which a string of scandals, including the collapse of FTX, led to a market meltdown, undermining the credibility of the sector.
The crypto market has been buoyed by the Fed’s latest interest rate decision. The US Federal Reserve on Wednesday held its key interest rate unchanged for the third consecutive time, in line with market expectations. With the easing of the inflation rate, members of the Federal Open Market Committee (FOMC) voted to keep the benchmark overnight borrowing rate in a targeted range between 5.25%-5.5%.
Additionally, the central bank indicated that three rate…
Bitcoin price has been hovering above the $43,000 psychological level over the past two days amid anticipation about the potential approval of a spot bitcoin ETF. The flagship cryptocurrency has climbed more than 16% in the past week and nearly 170% in the year to date. Bitcoin’s total market cap has increased by nearly 5% over the past 24 hours to $858.9 billion, while the total volume of the token traded rose by 43%. The Bitcoin price was trading at $43,914 at press time.
Fundamentals
Bitcoin price has posted significant gains over the past few days, climbing to its highest level since April 2022, before the crash of a stablecoin that started a litany of company failures, pummeling crypto prices. The world’s largest cryptocurrency briefly topped the crucial level of $44,000 on Wednesday amid rising momentum despite being massively overbought.
According to analysts, with no spot bitcoin ETF approvals yet and the halving event five to six months away, the market is riding on FOMO. Capital has been flowing in the Bitcoin market amid enthusiasm that the launches of spot ETF will bring in billions of dollars of new investment into the crypto sector.
Investors have already started providing capital as seed money for ETF products. Notably, a recent report by CoinDesk showed that the world’s largest fund manager, BlackRock, received $100,000 in capital from a seed investor for its spot bitcoin exchange-traded fund…
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