• The cryptocurrency market bounced back in 2021 despite a wave of negative news. Bitcoin currently trades above $30k, up 80% YTD.
• Recent research reveals that Bitcoin hoarding in personal wallets is on the rise, indicating positive sentiment towards cryptocurrencies.
• Despite the volatile nature of the industry and its potential for boom and bust cycles, investors are still showing confidence in cryptocurrencies.
Cryptocurrency Market Resilience
The cryptocurrency market has shown remarkable resilience in 2021 despite a wave of bad news during 2022. Bitcoin is currently trading above $30k, representing an increase of 80% since the start of the year. This indicates that investors still have faith in cryptocurrencies despite their volatility and previous bearish markets.
HODLing for Success
Recent research from the Bank of America shows that hoarding of Bitcoin into personal digital asset wallets has risen since its price jumped above $30k. This suggests that HODLing – holding onto one’s coins rather than trading them – may be the secret behind bitcoin’s success. Furthermore, it also shows how far bitcoin has come since 2010 when it was valued at just 5 cents per coin.
FTX Collapse & Other Bad News
The cryptocurrency market was hit by a wave of negative news during 2022 which resulted in a bearish period for investors. The FTX collapse turned out to be one of the largest frauds in recent history and led to multiple crypto lender bankruptcies as well as over 300 lawsuits and regulation cases around cryptocurrencies worldwide.
Investors Still Believe
Despite all this bad news, investors seem to still have faith in cryptocurrencies as evident by their increasing prices over 2021 so far. This could indicate that they expect more positive developments or bullish trends within the industry moving forward despite its volatile nature and potential for boom and bust cycles.
Overall, it appears that investor confidence is high when it comes to investing in cryptocurrencies as they continue to bounce back from their lows set during 2022’s bear market cycle. With HODLing being seen as key to Bitcoin’s success and increasing evidence suggesting further bullish trends ahead, now could be a good time to consider investing in digital assets if you feel comfortable doing so given their highly volatile nature