Feelings are very good right now, and there is one metric that shows why.
Bullish sentiment about coins requires a slight adjustment to your investment strategy.
10 stocks I like more than Bitcoin›
Bitcoin (Cryptography: BTC) It’s been up about 25% over the past 30 days alone. It’s likely that it won’t be that it will not be, and there’s one huge, undeniable reason to claim it.
So without further struggle, this is why the rest of 2025 will probably be a great time for the owners.
We all see the performance of our investments. The brokerage website and application makes it easy to see how your favorite stock or cryptocurrency works compared to a cost-based one. Total gain is indicated in green and red is loss.
The temptation to sell one of your holdings is much higher if your total revenue is negative. Conversely, it is fairly easy to keep your investment in the event that it is obvious that your (genius) investment paper is being developed, as shown by healthy benefits. If you’re the same as most people, you’ll probably look at the price list of your investments from time to time, whether you’re losing them or holding profits. Prove that your profits will continue to grow, at least psychologically, at least psychologically, the rolling line on the chart is enough to sell for fear of your losses getting deeper.
Image source: Getty Images.
Putting aside the ineffectiveness of short-term price-based reasoning about whether to buy, hold or sell assets, it cannot be denied that investors are an emotional group that tends to be unable to maintain a long-term mindset about their holdings when faced with anxiety experiencing losses. At the same time, something incredible can happen when most investors who own assets hold profits rather than losses.
As of May 5th, at a price of $95,000 per coin, roughly 88% of all Bitcoin wallets held Bitcoin with gain rather than loss, according to data from cryptocurrency data provider GlassNode. And that’s a big reason why you’re likely to continue climbing.
The coin currently costs over $103,000. The vast majority of Bitcoin owners are not under the emotional pressure to cut any losses. This means they are much more likely to hold their position and add them than they sell.
The story continues
It will continue to drive the coin’s price even higher in the short term, even before other powerful drivers are taken into account for their value.
It is very low that Bitcoin prices will rise forever, based solely on most holders with unrealized profits this month. Perhaps there will be some macroeconomic events that can crack the bullish sentiment of the market, and some investors will be selling. In other words, Bitcoin is destined to experience a crash or a sudden fall at some point in the future. The decline is so sharp that it is very likely that many investors lose it, sell their holdings, and swear completely on cryptocurrency.
It doesn’t undermine the long-term papers to buy and hold Bitcoin, but it’s a life fact that assets go through a cycle of highly favored and disgusting.
The way to deal with this reality is to plan to invest in both good times and those difficult times. If, as we do now, the market is actually euphoric about Bitcoin, averaging dollar costs (DCA) with small amounts of capital is a way to avoid being wiped out to make you feel sick if there is decline. At the same time, it is also a good idea to keep some of your capital in reserve to buy a dip at the price of the coin. Because doing so will allow you to capture it upside down when other investors are panicking.
The core pillar of this two-handed strategy is to hold the coin for the long term. This means that in this case it’s at least four years, but preferably about 40 years. The longer you accumulate Bitcoin enthusiastically, the more you will get from its inherent, ever-increasingly inherent rarity and the profits you can get from medium-term drivers, such as institutional and sovereignty adoption. Separate your investment habits from your emotions. It doesn’t matter how many investors hold in profit or loss – you will use that value-generating ability all the time.
Consider this before purchasing inventory with Bitcoin.
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Alex Carchidi has a Bitcoin position. Motley Fool has a position and recommends Bitcoin. Motley Fools have a disclosure policy.
Big reason why 1 Bitcoin will likely continue to rise this year
