Bitcoin gets weird when Elon Musk tweets a broken heart emoji. So why is it not happening that we are on the verge of third world war?
This can happen to new HODLers to some extent.
Young retail investors are increasingly betting on bitcoin as a long-term proposition rather than profit, swelling the ranks of these true believers, whose names came from a trader’s misspelling “catch” on an online forum years ago. had emerged.
This trend could help stabilize the notoriously volatile crypto market and potentially provide a long-term floor, according to some market watchers, who point to the fact that bitcoin was almost worthless before the Russian invasion. is 5%.
A study conducted by multi-asset retail investment platform eToro, which is said to have millions of users, found that people aged 18 to 34 were far more likely than anyone else to invest in crypto, 66% of that age group own bitcoin and other digital currencies. This is up from 46% of last July.
Perhaps more strikingly, more than a third of those who have invested in crypto said they view its long-term value as “a transformative asset class.”
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eToro US investment analyst Kelly Cox describes these people as “HODLers in short.”
“Those who believe in technology will be less likely to sell when scary headlines cross the tape,” he said, adding that he expects more retail investors to see crypto prices drop in the future.
While the eToro poll of 8,000 investors only provides a snapshot, the findings chime in with other platforms. Crypto exchange Currency.com says 31% of its clients are between 23 and 30 years old and 20% are between 18 and 20, while Busha, another exchange, says its average trader is between 18 and 40.
Larissa Bundziak types the young HODLer.
“I don’t think crypto is a get-rich-quick thing. That’s not the whole story,” said the 28-year-old Ukrainian public relations professional who lives in the United States.
He saw his bitcoin investments drop from $19,000 in late 2017 to almost $3,000 in January 2019, but said he “kept putting money in, and then all of a sudden, it was going up to $60,000”. She plans to increase her holdings.
“It’s about being able to send it to my family in Ukraine or wherever I want in the world, and my money isn’t made by a bank or third party where I don’t know what’s going on with it.” , “He said.
expect the unexpected
Anyone doubting that the retail trader may be a powerful and contrarian force in the financial markets has led to lofty highs last year when crowds of smaller investors drove “meme stocks” like GameStop to lofty heights.
As for bitcoin, a growing group of retail investors digging in for the long term may also undermine the stagnant influence of long-term investors and double down on the cryptocurrency’s own stash.
Bitcoin initially fell 14% to around $34,000 as Russian forces advanced into Ukraine on February 24. However, since then it has risen by 15 per cent.
It seems relatively gentle for a property prone to wild and unpredictable swings over the years. But be forewarned: If bitcoin has taught us anything, it’s to expect the unexpected.
Musk seems to have a special power; Bitcoin fell 35% in the month of May last year, when he said Tesla would no longer accept cryptocurrency for car purchases; It fell again in June after he posted “#Bitcoin”, a broken heart emoji and a photo of a couple discussing the breakup.
Profile of a crypto trader
Another demographic trend of the crypto market is also becoming apparent: traders skew men.
eToro survey shows 38% of male investors hold crypto, for example, only 19% of female investors.
A survey by US brokerage Robinhood found that 41% of female investors said they would and would never invest in crypto, compared to 24% of male investors.
“The gender investment capacity gap is a real thing and it persists despite a lot of interest and retail participation in the crypto market over the past year,” said Christine Wood, chief operating officer of Robinhood’s crypto business.
Market players say that there could be many reasons for male skewness.
“Crypto is at the intersection of finance and technology, which are themselves male-dominated industries,” said Ophelia Snyder, a Swiss-based provider of crypto products and co-founder of 21Shares and Amun Token.
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