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HODL or Sell? What Bitcoin Investors Should Do Amid Market Turbulence

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By Olumide Akinlaja - - 5 Mins Read
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Cryptocurrencies are some of the most attractive and controversial asset classes in the 21st Century. While its consistent volatility has drawn the unfavorable ax of many regulatory bodies, the same features have made it a compelling option for risk-tolerant investors.

Beyond any doubt, many investors, especially the first adherents, have successfully made lifetime fortunes from crypto investments, over the last few years. However, the assets’ recent downturn in value has seen many institutional and individual owners back down from crypto investments.

Perhaps the latest such disappointment is Germany's sale of $900 million worth of BTC. Expectedly, the public liquidation led to a sharp drop in the asset's price, adding to market turbulence.

Meanwhile, this wasn't the first time the German government would move large crypto funds to an alternate wallet. The government began liquidating its Bitcoin holdings in January and has moved large swaths of Bitcoins in millions of dollars since then.

Market dynamics have changed significantly since then as bulls demonstrate a loss in vigor. However, analysts claim there's still a silver lining to look out for regarding BTC investment amid market turmoil as the crypto asset’s volume remains in the average range. The trading volume, experts say, points to the fact that bulls still have their gaze around the market.

To HODL or Sell BTC? What's the Right Move for Investors Despite Turbulence?

Ultimately, each investor's choice depends on their risk tolerance and long-term investment goals. Technical data shows that Bitcoin price may thump the captivated zone, and receive a modest climbing curve above the crucial $58,516–$60,155 support zone shortly.

Meanwhile, despite the current challenges, many experts, including Brian Dixion, CEO of Off the Chain Capital, think that the greatest virtual asset by market capitalization may be largely undervalued. Dixion anticipates a significant influx of institutional investments into the market in the coming year, pulling a major bullish run for BTC.

According to Dixion, history favors Bitcoin to rebound strongly within the next 18 months, after an umpteenth decline. Like several other enthusiasts, Dixion thinks investors can HODL while expecting a considerable crypto boom after this season of decline.

Besides HODL, many analysts like Dixion advise investors to save or invest regularly, gradually accumulating the asset over time, while fancying the asset's potential for long-term growth. The deliberate strategy concentrates on capitalizing on Bitcoin's long-term growth potential, rather than pursuing short-term wins.

However, it's worth noting that risk-averse investors and those seeking quicker returns may do well selling BTCs for other asset classes to maximize short-term market gains.

In a Nutshell: HODL or Sell BTC Now?

Here's the summary of analysts’ conclusion on whether you could HODL or sell BTC now. BTC amid market turbulence forebodes crises in the interim but potentially boasts robust prospects with a historical track record of bouncing back from setbacks. Disciplined and risk-tolerant investors can HODL while awaiting the best returns from the world's biggest crypto, according to experts. On the other hand, investors keen on making short-term gains could do well to sell in exchange for other crypto assets.

Resources:

  1. https://www.coindesk.com/markets/2024/07/08/bitcoin-drops-as-german-government-moves-another-500m-of-assets/
  2. https://www.coindesk.com/video/bitcoin-is-significantly-undervalued-today-off-the-chain-capital-ceo/
  3. https://www.statista.com/statistics/326707/bitcoin-price-index/
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