A bifurcation of how crypto market crash affected different kinds of investors in the market

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Cryptocurrency crash’s effects on different types of investors.

Credits: Outlook India

The crash that occurred in May, certainly shook the market place, disappearing billions of dollars of the investors in thin air. The cryptocurrency institutions suffered the blow as many of them turned insolvent and filed for various chapters of bankruptcy. The cryptocurrency crash was so obstructive that it went on to derail Bitcoin from its peak to its lowest value. The cryptocurrency lost around 70% and started trading below $20,000.

The severity of cryptocurrency crash was observed different among the different type of investors in the market. The investors are broadly divided into Stable HODLS (Cryptocurrency holders are also called as HODLS) and unstable HODLS, who went on to sell a part of their holdings.



 

The position of Stable HODLS!

According to a study, it was found out that, investors who are wealthy and have a good income turned out to be stable HODLS. Only 28% of the investors from this category went on to sell a small amount of their investments, due to the cryptocurrency market crash. But the rest of the HODLS, were quite stable about the current market scenario, and believed that the bearish market won’t sustain long and the bullish market will come soon.

 

The position of Unstable HODLS.

A similar study as above revealed that, the investors who have low-income level and in general do not have financial condition, come under the Unstable HODLS. The study revealed that around 65% of the investors from this segment, went on to sell their holding in order to sustain their diminishing financial conditions.



 

Why do investors refrain from investing in digital assets? Let’s find out!

A study was also made were, it was found out why people in general who are from lower middle class don’t venture into the cryptocurrency market. Interestingly the study revealed that, the main reason for the people to stay away from the digital asset market is not actually the volatile nature of the market. Many of them believe that bitcoin is not legitimate, some of them did point out the volatility and some of them went on to accept that their financial condition didn’t allow them to support their investments in the cryptocurrency market.

It is a fact that cryptocurrency or any other digital asset for that matter, is highly popular among the wealthy and not so popular among the middleclass people. It is observed that, these wealthy millennials have particularly invested their time and money in bitcoins or altcoins.

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