Bitcoin Big Whale Tom Lee Urges Bitcoiners to Hodl on Despite Recent Bloodbath

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Bitcoin Big Whale Tom Lee Urges Bitcoiners to Hodl on Despite Recent Bloodbath
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For the crypto expert, it’s a regular phenomenon for the world’s pioneer crypto, Bitcoin to shed most of its weight once in a while. However, for the digital currency greenhorn, it’s always heartbreaking when the price of bitcoin and the altcoins crashes.

Hodl On

Former JPMorgan Chase’s chief equity strategist, Thomas Lee has called on bitcoiners to keep the spirit of hodl alive even at these trying times. The Fundstrat man is applying the expert knowledge he has about the stock exchange to bitcoin trading.

In his recent note entitled “Why HODL?” Lee stated that its quite “challenging” trying to time the market because over the years bitcoin has always generated a significant amount of its annual returns in less than a two –week period.
The expert also reiterated that investors should always adhere to the age-long rule of buying the dip and be patient enough as this system works like magic. “We think investors should be patient buyers of bitcoin here,” he stated.
Although for some people, it’s hard to separate emotions from the markets, especially at a period when the crypto ecosystem is going through a lot of regulatory pressure from the government. Patience is the ultimate solution to the problem, however.
The Expert strategist has also explained that:

“Market timing is generally discouraged in traditional equity investing. If an investor missed out on the 10 best days (for S&P 500) each year, the annualized return drops to 5.4 percent (ex- 10 best), from 9.2 percent. In other words, the case for buy and hold in equities is the opportunity cost of missing out on the 10 best days.”

The strategy is essential for bitcoin investing. If an investor misses out on bitcoin’s best 10 days of the year, he could lose as much as 25 percent, as stated by Lee.
At present, the price of bitcoin is just trying to float above the $7K price region, and according to Fundstrat, the BTC mining breakeven price is above $8000. In essence, bitcoin bloodbath is hitting the bitcoin miners hard too.
But Fundstrat has urged bitcoin holders to “breathe a sigh of relief” as all the regulatory hurdles that have contributed to the recent bear markets will soon be over.

“The overhang from regulatory risk is generally keeping investors sidelined. However, we see a positive catalyst for Bitcoin later in 2018, including the clarification of regulatory hurdles,” Fundstrat experts said.

The Fundstrat team has predicted a bullish 2018 for the crypto markets led by bitcoin and ethereum. When this bullish rally begins however, remains unknown.


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The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.