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The bifurcations observed in the price screens of the cryptocurrencies scare even the most novice (short-term investors) and that’s normal in the money business. ” virtual. But experts (long-term investors) and accustomed to volatility in many markets, these sales patiently wait from “panic” to take advantage of opportunities and accumulate coins.
Selling in moments of panic almost always translates into losses, both for the seller and for the currency itself; In this sense, when new traiders sell out of panic this causes even more a fall in the price.
This happens frequently when characters who generate trust in the financial world, such as Elon Musk, they hint that they will stop supporting a specific currency.
Let’s remember that Elon Musk, CEO of Tesla , said a few days ago that Bitcoin mining and transactions they were not at all “friendly” for the planet, and as a consequence announced the suspension of payments in bitcoins for the purchase of Tesla vehicles; as expected hours the bitcoin collapsed, and brought to the precipice other to the pit.
Metrics show that in the midst of the fall, there is usually another additional fall due to “panic sales” . Analysts explain that when cryptocurrencies begin to have these declining behaviors, the new investor tends to move away from the risk of losing everything , is practically withdrawn from the market.
Data analytics firm Glasnode notes that more than a million traders have liquidated their positions in recent months. Statistics show that about 1, 100 millions of addresses spent all the coins they had, that is, they sold them. Although experts say that this financial panic is later followed by a rise.
Instead, long-term investors are more used to this type of price fluctuation and are usually patient, Wait for corrections and take advantage of sales from those who panic.
Who we call “experts” calmly analyze when is the best time to sell and usually take advantage of the best time to buy . For example, the performance of crypto assets in recent years has been quite positive, in fact, for those who invested in and that they have not yet sold the figures indicate that they already have a profit of almost one 800%.
Then Quite the opposite of panic selling, long-term investors use the fear of others and buy every day during the fall, and thus manage to accumulate coins cheaper than their regular value.
In this regard, Glasnode in its address count indicates that the non-nulls have fallen during the last correction, while the addresses that are accumulating have increased by 1.1% . Those “accumulating addresses” are those that have at least two incoming transactions but have never spent any currency. This is reflected in late graphics of 2020 and beginnings of 2021.
Glasnode analysts note that the current supply of long-term investors in property is more than 2.4 million BTC, more than it was at the peak of 2017.
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