Survey shows that 55% of crypto investors chose to HODL when Bitcoin and altcoin prices collapsed
The crypto and stock markets are down, and apart from the positive news that Celsius is repaying all their debt and avoiding a massive liquidation, there are few reasons to get investors to buy Bitcoin and altcoins.
The collapse of a number of decentralized financial protocols (DeFi), crypto-investment funds and BTC trading 60% below the all-time high continues to weigh on sentiment, but a few positive data bits may be a sign that the market is ready to enter a consolidation phase.
expects people to shift from a comatose state of fear to the realization that tens of billions of dollars in forced sales (LFG, 3AC, lenders, miners) were a capitulation / risk transfer that only competed with the Covid crash https: // t. co / vAj7HfTKxf
– light (@lightcrypto) July 7, 2022
Cryptoinvestors HODL
According to a recent survey conducted by Appinio, despite the collapse in crypto prices and the start of the bear market, “more than half (55%) of crypto investors held their investments in response to the recent sale of the crypto asset market with only 8% selling their investments.”
This suggests that the investment beliefs of a majority of crypto investors remain strong. The study also found that “33% of US investors are invested in cryptocurrencies,” a “40% of investors believe Bitcoin provides the best investment opportunity over the next three months.”
US investors show resilience
Regarding how US investors reacted to the broad withdrawal across the financial markets, Appinio found that 65% of respondents kept their investments and remain confident in their choices.
When asked to point out their most pressing short-term concerns, 66% of those asked mentioned rising inflation, 39% highlighted the state of the global economy and 34% identified international conflict.
According to Callie Cox, an American investment analyst at eToro, these concerns, combined with ongoing uncertainty “and a general increase in the cost of living and housing costs”, have created “a perfect storm of setbacks” for investors.
Cox sa,
“Despite these factors, investors across generations show a level of maturity and understanding and do not allow emotions to dictate important money decisions.”
Related: Bitcoin traders expect a “generational bottom”, but BTC derivative data disagree
Bitcoin enters oversold territory
In addition to the resilience shown by crypto investors, several calculations on the chain also indicate that the market may have hit oversold territory and is prepared for a consolidation period.
The MVRV Z-score, which uses a combination of Bitcoin’s market value, realized value and z-score, has been a reliable tool for identifying when BTC is “extremely over or underestimated relative to its fair value”, according to LookIntoBitcoin.
As shown in the chart above, periods where the red z-score has entered the lower green band have represented good buying opportunities for BTC, as have times when the market price fell below the realized price, a feature shown with the blue and yellow lines at the top on the diagram.
The Bitcoin investor tool provided by LookIntoBitcoin also provides insight into when buying or selling Bitcoin can provide greater returns.
The green shaded areas on the chart represent periods when the price of Bitcoin is at a level that is considered historically low and may represent a good opportunity to buy.
It should be noted that with the Bitcoin investor tool and MVRV Z-Score, the time spent in bear market conditions varies and can last for a longer period, so it would be wise for investors not to just base their investment task on any special metric or indicator in isolation.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trade involves risk, you should conduct your own research when making a decision.
