Crypto Investors Need A Shot Of Bitcoin Hopium + Chime’s Coinbase Revealing Data

Since December 2017, Bitcoin is in a bear trend that has affected the whole sentiment on the market. When Bitcoin raised in April 2018 33 percent, some investors decided to leave the market and wait for a real dip to enter again.

The market is now 70% down from it’s all time high and it does not seem to be changing soon. Cryptocurrency enthusiast have a word that is used massively during market selloffs, which is known as ‘hodl.’ They use it in order to call for investors not to sell their currencies and hold them even when the market falls. But it seems that the phrase behind this word ‘hold on for dear life,’ is not having the same effect as before.

One of the most important crypto exchanges in the United States, Coinbase, is seeing its users take their funds out from the platform at higher rates than those introducing new funds. April was the first month in which the money going out of Coinbase exceeded the money flowing in.

The information has been provided by Chime, a San Francisco-based company that offers free checking accounts. Since December, this trend has been increasing, withdrawals were growing little by little and in April, the numbers were totally negative to Coinbase.

Investors took 37% more money out of Coinbase than they put in. The numbers show that they were withdrawing $1.37 for each dollar deposited.

The analysis is based on over 500,000 of Chime’s active customers. Of course, this may not be reflecting the real amount of users leaving the platform. Coinbase has more than 20 million users, while most of the users analysed by Chime are between ages 25 and 35.

Coinbase did not give any comments on the matter, but the trend highlights negative sentiment among crypto investors. The prices of virtual currencies were raising in April, showing that it was the correct moment to wait longer to enter the market.

Indeed, this movement by Chime’s investors shows that the future outlook for Bitcoin was negative, even when the market was raising. In a market selloff all cryptos go down, but here, prices were growing at good rates every single day.

Chad Cascarilla, founder and CEO of Paxos, an important institutional trading firm, said about this situation:

“You have a kind of washing out of momentum investors… investors who were not really taking a long term point of view.”

And this may be explained by the fact that individuals were searching for volatility to make short term profits, and then leave the market.

Brian Armstrong, CEO of Coinbase, tweeted the last week about this situation. He said that the long bull run has made some investors give up on cryptos.

Additionally, there are true Bitcoin believers that put their savings into it and now they feel squeezed. Indeed, some individuals bought cryptocurrencies with credit and others used their life-savings.

But Cascarilla says that the market may still fall even further.

“I’m sure people are saying, ‘Hey, a price correction tends to go on for a pretty long time, and it tends to be steep – I’m just going to take some money off the table here because who knows how deep it goes and how long it lasts?’” he commented.

The Chaunalysis study showed that long-term holders sold over $15 billion dollars to speculators during the first four months of this year.

Chris Britt, Chime’s CEO, explained:

“Unfortunately, it’s human nature that investors often buy at the highest prices and sell at lower prices. While we can’t predict the future value of Bitcoin, I suspect we may look back at the current prices a few years from now and see that these lower prices were a great time to buy.”

There are some important figures in the cryptocurrency space that believe that Bitcoin will grow exponentially in the future and even reach $1 million dollars in 2020. John McAfee is one of these individuals that have faith in the famous virtual currency and are totally involved in the ecosystem.

Other experts have lower expectations, but there is an important consensus around $20,000 to $50,000 dollars.

Get Daily Headlines

Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

What to Know More?

Join Our Telegram Group to Receive Live Updates on The Latest Blockchain & Crypto News From Your Favorite Projects

Join Our Telegram

Stay Up to Date!

Join us on Twitter to Get The Latest Trading Signals, Blockchain News, and Daily Communication with Crypto Users!

Join Our Twitter

Add comment

E-mail is already registered on the site. Please use the Login form or enter another.

You entered an incorrect username or password

Sorry, you must be logged in to post a comment.
Bitcoin Exchange Guide