It has been more than six months since the peak of about $20,000 was reached in December last year, and then the 70% crash and the continued bear market of cryptocurrencies have tested the patience of investors – especially those who bought bits during the frenzy of last year. Investors of currency.
For a long time, digital currency investors have always liked to use the word 'hodl' to encourage each other when the market plunged - 'hodl' was a misspelling of 'hold' and was later regarded as 'hold on for dear life'. Abbreviations held. But new data suggests that their confidence in this principle is waning.
According to exclusive data provided by Chime, a bank startup in San Francisco, which provides free checking accounts, Coinbase’s customers, the largest digital currency exchange in the US, took more money from the company in April than deposited more money.
Since the peak price of Bitcoin reached 20,000 U.S. dollars in December last year, the funds extracted from Coinbase have been increasing. However, according to Chime's data, April was the first and only month outflow of funds from Coinbase that exceeded the inflow of funds. During the month, investors redeemed more money from Coinbase than invested 37% - withdraw $ 1.37 for every $ 1 deposit.
In May, Coinbase’s invested capital exceeded redemption funds, but each redemption of a dollar had only 10% of its profits, which was approximately $1.10.
The analysis is based on the behavior of approximately 500,000 active Chime users, most of whom are between the ages of 25 and 35, and may not be able to fully reflect Coinbase's condition of more than 20 million users. Coinbase declined to comment. It should be clear that , Many institutional investors and sophisticated investors are not Chime's clients.
However, the trend revealed by the data is noteworthy because it highlights some of the investor's negative sentiments in April. It is necessary to know that in April, the digital currency price is rising rather than panic selling when the market collapses. This gap It shows that they are pessimistic about the prospects of Bitcoin and lack confidence in the recovery of Bitcoin.
This model also reflects that, for the recent novice digital currency investors seeking to make quick money, they are not used to the ups and downs of the price of Bitcoin and similar products.
Paxos is an institutional trading company that also runs the bitcoin exchange itBit. Chad Cascarilla, co-founder and chief executive, said: “You don’t have much boost, For many investors, there is no real long-term view.
In fact, as bitcoin prices rise sharply in 2017, a large amount of new money is pouring into the bitcoin market, which is often from young, inexperienced investors. Millennials invest in Bitcoin compared to other age groups. The possibility is even greater. According to the “Financial Times” report, Chainalysis tracking the transaction history of blockchains found that long-term investors sold only $15 billion worth of Bitcoin to 'new speculators' in December.
Brian Armstrong, Coinbase’s chief executive, acknowledged last week that the long-term economic downturn has caused some investors to abandon digital currencies and 'get rid of those who joined for the wrong reasons.'
But there may be sellers who still believe in Bitcoin. They just put their savings into bitcoin at a high point, and now they feel under pressure. Some people used credit cards to buy bitcoin last year, even using home mortgages. Buy bitcoin.
Cascarilla said that as the price of digital assets plummets, some people may decide that if they reduce some losses now, they will sleep better at night, in case the worst is still behind. 'I believe people will say, '嘿The price adjustment will often last for a long time, and the range will be great - I just want to take some money from here, because who knows how long it will last?' '
This may also include some early Bitcoin users. The study found that in the first four months of this year, long-term holders sold $15 billion to speculators.
In hindsight, even investors who were looking for a way out during the stock market rally in April were foresighted. Bitcoin traded at about $9,240 at the end of the month and since then has fallen by 37%. This Friday morning Has fallen to around 5850 US dollars.
However, Chime CEO Chris Britt pointed out that the overall pattern of liquidity shows that the market timing of investors is not good. Britt said: 'Unfortunately, investors often buy at the highest price It's human nature to buy, sell at a lower price. ' 'Although we can't predict the future value of Bitcoin, I guess, after a few years we look back at the current price, maybe it's a good time to buy. . '
Of course, investors may need a strong mentality to conduct this gambling.