More than 65% of survey participants said they would keep holding bitcoin if the asset’s price dumps by 90% – but would they really?
Nearly 70% of current bitcoin holders are prepared to endure a massive price crash that drives the asset to below $3,000, showed a recent poll conducted by VanEck’s Director of Digital Assets Strategy – Gabor Gurbacs.
HODLers Mentality Confirmed?
It’s safe to say that the price of bitcoin has suffered severely in the past three months or so. It was in late Q1 and early Q2 this year when the cryptocurrency was flying high, registering new records almost daily. It all culminated in mid-April when the asset reached its highest price line ever of $65,000.
However, the tides quickly changed following FUD started by Elon Musk and intensified by China. In fact, the Asian Superpower’s actions were even more vigorous this time, with a flat-out ban on BTC mining.
Consequently, bitcoin started tumbling and has lost more than 50% of its USD value in the subsequent three months. This gave wings to critics who started predicting even more doomsday scenarios hidden right behind the corner.
As such, Gabor Gurbacs from VanEck has decided to see how holders would react if BTC is to dump by 90% from its current price line to under $3,000.
Although the poll has not finished yet, as of writing these lines, the responses quite clearly confirm that most people would stay strong and hold their assets.
Would Their Hold Really, Though?
Such a scenario in which BTC loses it loses a zero from its current price tag seems quite unlikely as of now. Nevertheless, the asset has gone through massive crashes in the past, so saying that it’s impossible to go below $3,000 could be inappropriate.
And, potentially seeing the bitcoin holdings going through a 90% correction could be challenging, to say the least, for every investor, no matter how experienced or how long he has been in the market. After all, investing is a game of psychology and emotion as well.
As Warren Buffett once said, “if you cannot control your emotions, you cannot control your money.” So, it may sound like a no-brainer to click on the “yes, I can live through such a crisis” button now, but if it transpires for real, then the situation could be significantly different.
Back in May this year, when BTC had already started to retrace rapidly, reports emerged suggesting that many smaller and newer investors have disposed of their holdings in a hurry. Some of whom even sold at a loss. That was after a 30% correction – imagine what could happen if the cryptocurrency goes through a 3x worse retracement.
At the same time, this opened the door for more macro investors to accumulate massive portions. Of them was Michael Saylor and his company – MicroStrategy. Interestingly, he recently highlighted his HODLing approach for his rather substantial BTC stash. MicroStrategy’s CEO said he would not be pressured to sell any of his and his company’s coins, no matter how low bitcoin’s price goes.