Both the global stock markets and the crypto world know of a catastrophic event this year which came in the form of ‘Black Thursday’. For Bitcoin it became one of the worst days ever. It now seems that many Bitcoins have since left the major trading platform wallets and are now being held for the long run. Or just as Changpeng Zhao, the CEO of the worlds largest cryptocurrency platform Binance advised earlier this week, it is better to hodl than to trade.
Black Thursday
Any day known within a financial environment as ‘Black’ is supposed to be a very bad one as it points towards a very heavy (and sometimes unexpected) selloff. The most famous one for a long time was ‘Black Monday’ 1987, when world markets tanked. On that day, the New York stock exchange known as the Dow Jones fell some 22%, or 508 points in those days. Given it’s levels now, that kind of points change would be a modest day. Given it’s levels in percentage, that was one of the largest falls ever.
The crypto world now also knows a ‘black’ day. It was March 12th, which is now being labelled ‘black Thursday’ by crypto enthusiasts.
As the world’s stock markets experienced a rapid selloff due to the Coronavirus entering Europe and introducing lockdowns for the first time ever into western society, investors began to realize that the first months of 2020 would be ‘lost’ in terms of revenue. As a result, they had been selling stocks all week. Crypto simply got pulled into all that action which culminated on March 12th – a day now known as “Black Thursday”. For Bitcoin, which has known rapid price swings before, the events of that day were quite extreme.
Bitcoin, was still trading up for the year, at a level of around $8,000 in the early hours of the morning, but saw a very sharp and rapid decline that led it to the lower $5,000 level.
Although this was already very harsh, the trend didn’t stop there and the most famous crypto fell further to the $3,800 level. Shaking off all the longs that were holding it for short term profit, the coin then reversed and finally started climbing again, having seen one of the wildest days in it’s existence.
New data now shows that over 310,000 Bitcoins have since been removed from global exchanges. This means that traders no longer want to trade them but rather hodl these coins, and wait for the long term profit. As Bitcoin has since climbed back from it’s losses and is now trading around $9,000 again, this seemed like a winning strategy.
Edward Snowden for the turnaround
Back in 2009, the bottom of the global stock markets after the Lehman brothers demise and the following financial crisis was called by then US President Barack Obama, who said that stock market indexes looked rather cheap. If you would have bought on that day and hodled until now, you would have netted a fantastic profit.
In the crypto world, it was infamous NSA whistleblower Edward Snowden who called the bottom on March 13th apparently. He called the previous day’s drop too much panic and too little reason and stated that he for the very first time would consider buying Bitcoin. If you would have followed Edward’s advice, you would have made a 100% profit since then, in only two months.
Main picture credit: https://torange.biz/fx/bitcoin-red-concept-background-182247
The Satoshi Times 