Investors Keep Holding BTC, Believing That Its Price Is Still Far From The Maximum Mark
According to the latest data, the number of investors who hold Bitcoin in their wallets has reached a new record and in total is 60%. After the purchase, this cryptocurrency did not participate in transactions, and, likely, investors are not going to sell it shortly.
Waiting for “a big jackpot”
The strategy of keeping Bitcoin to “better times” indicates that many investors continue to trust a digital currency. When buying Bitcoin, they made a bet for the long term, so they are in no hurry to get the benefit of short-term jumps in the price of the crypto asset.
There have already been periods in the history of Bitcoin when investors could profit multiple times. In particular, investors who bought Bitcoin in 2015 for about $3,000, in 2017 they could get a great profit because then the price of BTC jumped to $20,000.
Investors who bought Bitcoin at the beginning of the cryptocurrency launch, even with the current exchange rate just below $10,000, can get a good profit. But Bitcoin-holders are in no hurry to take such a step and believe that the price of Bitcoin has not yet reached its maximum.
Is 2020 a failure year for Bitcoin?
In early 2020, many investors enthusiastically expected this year to be a breakthrough for Bitcoin. In their opinion, the starting point for the onset of “stellar time” was to be Bitcoin halving. But the spread of the COVID-19 pandemic and global economic stagnation made adjustments to the plans of active participants in the financial market.
Halving Bitcoin did not bring the expected price increase, and many analysts began to call Bitcoin a poor option for diversification. Bitcoin’s position further exacerbates its turbulence over the past month. As a result, thoughts cautiously began to appear in the crypto space that 2020 would not be a victory for the flagship cryptocurrency.
In particular, Bloomberg senior editor Joe Weisenthal identified 6 reasons that indicate that 2020 was a failure for Bitcoin. He believes that investors may lose interest in Bitcoin due to the lack of a rally BTC.
Nevertheless, the high volatility in 2020 was characteristic not only for cryptocurrency but also for the stock market. It is possible that due to the upcoming economic crisis, many investors will abandon risky assets, including Bitcoin. What decision in this case will be made by the Bitcoin holders? Time will tell.