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Crypto news: HODL bitcoin? Long conviction ‘uptrending’

By Daniela Ešnerová


Updated

Bitcoin (BTC) logo with a HODL sign
HODLers are not panicking, analysis by cryptocurrency exchange Kraken suggests – Photo: Shutterstock

The cryptocurrency market has had an underwhelming start of 2022 so far. Bitcoin (BTC) is down 7.4% year to date and is trading 37.8% below its all-time high recorded last November.

Meanwhile, the extreme fear in the market has been at the highest in months, the Crypto Fear and Greed index shows.

But data about long-term holdings indicates a more positive outlook, an analysis by cryptocurrency exchange Kraken shows.

In a recent report, Kraken looked at the BTC HODL Waves metric, which measures the proportion of BTC circulating supply that has not moved for long periods of time. HODL is a code for a deep conviction among cryptocurrency market enthusiasts. It originated as a misspelling of ‘hold’ in an internet forum.

“There doesn’t appear to be any abnormal selling (among long-term holders) despite the year-end pullback,” Kraken’s report noted. “Long-term holding conviction is uptrending after moving sideways for the past several months.

DOGE/USD

0.13 Price
+7.030% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.0012872

SOL/USD

174.73 Price
+2.540% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 2.2652

XRP/USD

0.60 Price
+3.180% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168

ETH/USD

3,534.28 Price
+0.660% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00

“However, should the market weaken further and dormant coins begin to be sold off, BTC’s existing supply shock would fade as more immediately marketable BTC supply grows.

“Though such would imply that the bears have taken market control for the moment, for the time being it seems that the bulls have yet to lose the battle.”

Quote of the day: ‘Nothing more than a pyramid scheme posing as currency’

Jon Stephenson von Tetzchner, chief executive of Vivaldi Technologies, the company behind the Vivaldi web browser, wrote in a blog post:

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“Cryptocurrency has been touted by many as a revolution in currency, the future of investment, and a breakthrough technology. But if you look beyond the hype, you’ll find nothing more than a pyramid scheme posing as currency.”

Other news:

  • Singapore’s central bank is looking to tame cryptocurrency promotions, Reuters reports. The Monetary Authority of Singapore has issued guidelines to discourage crypto trading by the public.

Top coins by market capitalisation

As of 09:35 UTC:

Winners and losers

  • Cardano (ADA) defied the price movements of major virtual tokens, adding 8.95% over the past 24 hours and 33.75% over the last week. Meanwhile Near protocol (NEAR) recorded another all-time high, reaching as high as $20.42, having risen 38.07% over the past seven days.
  • Terra (LUNA) lost 5.59% over the last 24 hours, making it the biggest daily loser in the top 10 coins by market capitalisation

Read more: Cardano outperforms rivals as DApp deployments gather pace

Markets in this article

BNB/USD
Binance Coin / USD
603.51 USD
3.06 +0.510%
BNB/USD
Binance Coin / USD
603.51 USD
3.06 +0.510%
BTC/USD
Bitcoin / USD
67477.60 USD
414.05 +0.620%
ETH/USD
Ethereum / USD
3534.28 USD
22.98 +0.660%

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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