Bitcoin is sometimes too valuable to let go. In fact, many people – and in this case we call them “koalas” because they love to cling on and never let go – hold on to their precious crypto even when everything else seems hopeless.
Predictability may be a vague word especially in an extremely volatile crypto space. In fact, it’s very hard to invest for long term on the crypto market compared to the equity market because the volatility is so frequent that it’s hard to decipher what will happen next.
With that being said, it’s a challenge to hold on to your crypto investments especially when the market crashes or to avoid selling when things are looking good. However, many investors choose to hold on to their Bitcoin when everyone else is in panic mode and selling their coins.
The crypto meltdown has propelled some investors to sell their assets, while a majority of investors choose to stick it out anticipating a crypto boom in the future.
Bitcoin Study: 78% Didn’t Budge Despite The Crisis
A recent study posted on Civil Science revealed that roughly 55% of cryptocurrency investors held on to their digital assets in the past few weeks despite the massive sell-offs. Around 45% decided to sell most of their crypto investments, while 26% just sold everything. The remaining 20% opted to sell only a small portion of their crypto assets.
Arguably, in a feedback provided by over 4,466 respondents consisting of mostly retail investors, despite the massive crash happening in the cryptocurrency market, around 78% didn’t budge or insisted that the crisis didn’t affect them negatively in any way. Meaning, they still bought or invested in crypto.
Image: Animal Fact Guide
Notably, the crypto market is known to generate immediate returns in spite of the immense volatility. The research was precipitated by the market having a lot of significant downturns such as the crash or Terra (LUNA). The recent correction prompted many businesses to change their strategies and operations such as Voyager Digital and Celsius that filed for bankruptcy.
More so, it was also at this period that Bitcoin registered its lowest quarterly returns at -56% for the second quarter this year.
In addition, the findings of the study also mentioned this rationale by some crypto analysts that this meltdown is part of the bigger scheme of things in terms of crypto. For one, Mike McGlone, Bloomberg Intelligence commodity strategist, pointed out that the crypto market, specifically Bitcoin, will go up and take the second quarter of 2022 by storm.
Crypto Showing Rapid Price Gains in July
The crypto market showed signs of rapid price gains in July. More so, increase in investor interest also led to the pump in crypto prices.
Bitcoin, together with Ethereum, are two of the cryptocurrencies that people can confidently buy and hold for a long time. Bitcoin isn’t the king of crypto for nothing. It has an excellent track record and so much growth potential upon inception.
In fact, despite the vigorous ups and downs that the crypto market is going through, Bitcoin koalas refuse to let go and cling on their trees as long as they can.
BTC total market cap at $443 billion on the daily chart | Source: TradingView.com Featured image from Discover Magazine, Chart from TradingView.com