There’s no denying that panic has swept through the crypto sphere as of late. With the crypto ad bans[1] by major companies like Google, Facebook, and most recently Twitter, prices of cryptocurrencies have taken a beating as many people believe this to be the end.
Have no fear, though, because this isn’t the end. Crypto will recover, and it will continue. People are still interested in the space. Just ask Wall Street or Bill Barhydt, the CEO of Abra.
CNBC[2] reported that a Wall Street analyst is for HODLing Bitcoin (BTC).
Wall Street analyst Thomas Lee took a stock investing approach to Bitcoin and said that it is an “attractive buy.”
Lee’s approach is that only a few days in the entire year account for the overall return on investment for something like Bitcoin:
“The reason ‘buy and hold’ (or HODL) makes sense for BTC is that a handful of days each year account for the bulk of gains for BTC. For instance, in 2017, a total of 12 days represent the full-year return of BTC.”
That means that if you’re looking to make a profit on Bitcoin, you need to HODL, through the good and the bad, to capture those days.
However, can a stock investing approach really be applied to Bitcoin, when it’s been around for far less time than the decades-old stock market and is way more volatile? With less data to work from, it’s harder to generalize results. Be that as it may, Lee’s reasoning is something to keep in mind for those inclined to panic when Bitcoin drops.
Lee’s argument essentially comes down to this: be patient and HODL through to the good days.
>> Ripple (XRP) joins forces with blockchain consortium Hyperledger[3]
Those good days may be approaching fast, according to Abra CEO Bill Barhydt.
Abra runs a global digital wallet app where you can buy, store, and invest in up to 20 cryptocurrencies, including Bitcoin, Ethereum, and Ripple.
In an interview with Business Insider[4], Barhydt claims that Bitcoin is in store for another price rally – and soon. He believes that once institutional investors, like hedge funds and asset managers, start exploring cryptocurrency, Bitcoin prices, along with the rest of the crypto market, will recover.
“That’s going to happen this year I think,” said Barhydt.
He explained his reasoning:
“I talk to hedge funds, high net worth individuals, even commodity speculators. They look at the volatility in the crypto markets and they see it as a huge opportunity. Once that happens, all hell will break loose. Once the floodgates are opened, they’re opened.”
>> Coinbase adds ERC20 support – altcoins to come?[5]
Barhydt pointed out that the December crypto price rally of last year corresponded with Japanese financial institutions investing in cryptocurrencies. He believes this will happen again
