Bitcoin Koalas: 55% of investors did not sell their coins during the crypto storm
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 all else seems hopeless.
Predictability can be a vague word, especially in an extremely volatile crypto space. In fact, it is very difficult to invest long-term in the crypto market compared to the stock market because the volatility is so frequent that it is difficult to decipher what will happen next.
That said, holding on to your crypto investments is a challenge, especially when the market crashes or to avoid selling when things look 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 prompted some investors to sell their assets, while a majority of investors are choosing to hold off in anticipation of a crypto boom in the future.
Bitcoin study: 78% did not budge despite the crisis
A recent study published on Civil Science revealed that roughly 55% of cryptocurrency investors held onto their digital assets in recent weeks despite the massive selloff. Around 45% decided to sell most of their crypto investments, while 26% just sold everything. The remaining 20% chose to sell only a small portion of crypto assets.
Undoubtedly, in a feedback given by over 4,466 respondents consisting mainly of retail investors, despite the massive crash that occurred in the cryptocurrency market, around 78% did not budge or insisted that the crisis did not negatively affect them in any way. That means they were still buying or investing in crypto.
Image: Animal Fact Guide
In particular, the crypto market is known to generate immediate returns despite the huge volatility. The investigation was prompted by the market having many significant downturns such as the crash or Terra (LUNA). The recent correction caused many businesses to change their strategies and operations, such as Voyager Digital and Celsius filing for bankruptcy.
More so, it was also during this period that Bitcoin recorded its lowest quarterly return of -56% for the second quarter of this year.
In addition, the findings of the study also mentioned this reasoning from some crypto analysts that this meltdown is part of the bigger scheme when it comes to crypto. First, Bloomberg Intelligence commodity strategist Mike McGlone pointed out that the crypto market, specifically Bitcoin, will rise and take the second quarter of 2022 by storm.
Crypto shows rapid price gains in July
The crypto market showed signs of rapid price increases in July. More so, increased investor interest also led to the pump in crypto prices.
Bitcoin, along with Ethereum, are two of the cryptocurrencies that people can safely buy and hold for a long time. Bitcoin is not the king of crypto for nothing. It has an excellent track record and so much growth potential at startup.
In fact, despite the strong ups and downs that the crypto market goes through, Bitcoin koalas refuse to let go and cling to the 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
