To add fuel to the fire, projects are being debated in the United States to regulate the sector—something that affects expectations about the price of cryptocurrencies—while they appear more and more.
Often fraudulent and non-transparent business who have gone bankrupt. One of the cases that has had the most impact in recent months is the collapse of the Luna digital currency, which left hundreds of people on the street, who bet their money in the quest for great profitability, and eventually become helpless. Look at how his eyes had faded earlier.
For Edward Moya, a senior market analyst at consulting firm Oanda, the steep rise in inflation played a key role in the fall in prices.
“Cryptocurrencies fell after a wave of aggressive adjustments by central banks following persistent inflation, leading to a sharp decline in riskier assets,” he told BBC Mundo.
The desperate reaction from large institutional investors who moved large amounts of capital also played a part.
“Panic Selling Accelerates Crypto Bearish” Their investments were cut after all institutional money entered the crypto space in 2021,” Moya argues.
With all the wind against it, there are “crypto devotees” or “crypto evangelists” who are convinced that the current collapse – bitcoin in particular – is part of one of the cycles of volatility that has existed since the advent of the digital currency. In front of the market in 2009.
“We are not selling”
Their main argument is that in the long run, one bitcoin will be worth hundreds of thousands of dollars, which is why this bearish cycle is just one part of a larger rally.
Let the current price of bitcoin be
less than a third They say the price it had a few months ago is not a sign that the bubble has burst.
They are the ones who tell who wants to be heard:
We are not selling (“We are not selling”)As if it were a war slogan.
As a fraternity that wants to encourage its members to protest, when asked what to do with bitcoin, they give a resounding answer: “HODL” (which means “hold” in Kryptonian jargon). is a way of saying, i.e. to hold or maintain.
The term “HODL”, which is always capitalized on the social network, apparently originated in a Bitcointalk forum, when a user wrote
“I AM HODLING”, misspelledCrypto is giving birth to one of the most famous manifestations in the world.
That’s exactly what some “shrimp investors” and some “whale investors” are doing: resist the temptation to sell, that is, HODLING.
shrimp and whale
Continuing in the world of Kryptonian jargon, not everyone who is part of this universe is in the same category.
Shrimp are the ones that have less than bitcoin (which is worth US$23,000 these days).
Whales are those who have more than one bitcoin in their portfolio As explained by the Glassnode Cryptocurrency Analysis Center, investors and miners are in charge of generating bitcoins using powerful computer networks that work with blockchain technology (or chains of blocks).
James Check, chief analyst at Glassnode and an ardent cryptocurrency advocate, says that despite the volatility in the market, there are shrimp and whale investors who have continued to buy bitcoin in 2022.
Especially shrimp, which is considered a retail investor.
In conversation with BBC Mundo he argues, “Bitcoin is a unique asset, with a large proportion of those who have high faith in this smart money being retailers.”
This is largely due, he said, to the fact that since bitcoin was created and at the time it began to rise, it was shrimp who bought the digital currency, that is,
Ordinary individuals instead of millionaires or institutional funds.
Other reasons stem from the fact that there has been increased education about currency and, from his point of view, transparent data about the market.
Small investor is ready to bear any downside while whales are more likely to abandon ship if it feels there is prolonged downward pressure on the crypto market,” Moya argues.
“The crypto winter may end in these months or as early as 2023, but so far, both small investors and whales are determined to keep their cryptocurrencies,” the economist says.