HODLERs Shall Prevail

With the recent drop in Bitcoin price, a lot of Nebeus customers reached out looking for perspective. After being a part of crypto community for the past almost 8 years we have seen Bitcoin go through a lot. But our approach has always been – look at the bigger picture. While the indicators over the past 7 days may be negative, as crypto owners ourselves we make note of positive growth over the past 30 days (adding almost 6.5%) as well as an overall positive trend over the previous couple of years. BTC’s latest downturn could be attributed to short term speculators trading on financial indicators rather than HODLERs which are “Likely Bullish”. Just last year Goldman Sachs named Bitcoin “the best performing asset of the year”, as Bitcoin prices more than doubled over the course of the year, with U.S. tech stocks retuning just 31 percent to their investors.

Since the uncertainty and downturn in worldwide markets at the start of March, we have seen an overall resurgence of interest and price action for Bitcoin, taking it from just over $5k USD to a peak of nearly $12k. This can be an indicator of players both large and small seeing BTC as a store of value to hedge against traditional markets, an indicator that BTC is becoming a stronger investment consideration for many.

“With stocks soaring to new records after a decade-long climb, traders in traditional markets are asking how much higher they can go in the midst of a global pandemic, openly discussing whether the market is just propped up by government stimulus checks and Federal Reserve money injections,” writes Coindesk, which underpins the logic of all current participants in crypto. We are better off in a financial market that is finite and transparent.

Like in all investments there are ebbs and flows and in recent months we have seen positive indicators that could propel Bitcoin to new all-time highs including more holding activity, declining exchanges reserves, and more institutional players seeking the buying and selling of large blocks. This supports the medium and long term bullish arguments for HODLing BTC.