Accumulation Is Key in Bitcoin Investment, Says Binance CEO
Bitcoin is between bulls and bears in recurrent situations, and the market sentiments are alike back and forth along with it. In such contexts, Chaopeng Zhao, Binance CEO, tweeted that the key to success in bitcoin investment lies in accumulation.
“Accumulation is key! I heard for many people, the first time they buy BTC is the most BTC they have had so far, even/especially after years of hard work trading/investing/etc. They sell, and price goes up. Does this ring true for you?”
Many bitcoin whales or crypto billionaires accumulate wealth by using big price swings with great patience, so that they can survive longer and meanwhile grow bigger in the crypto space, rising from nobody to big names. As previously reported by 8btc, a middle-school dropout alleged to hold 3,900 BTC starting with 2,800 Chinese yuan (roughly $400) by sticking to the rule of accumulation.
Bitcoin had a phenomenal run climbing up to its all-time high of nearly $20,000 per BTC in mid-December last year. The price over the past month had once plunged to a low of below $6,000 on August 14, losing close to 70% of its value again following the February sluggish.
The lasting dip has led to a lot of cryptocurrency traders short their bitcoin holdings, while the richest bitcoin holders are accumulating more BTC by taking full advantage of these price swings.
The past month saw a majority of the top 100 richest bitcoin “holders” increasing their bitcoin holdings more or less. Put exchange’s wallets aside, some mysterious addresses have been taking in bitcoin over the past month – 17,000 BTC went into the 26th richest address, 15,500 BTC went in the 72nd richest address, 3,302 to the 78th richest, and 10,636 to the 99th richest one, according to bitinfocharts.
Among the top 50, they just HODL, there’s rare withdrawal but 6 addresses saw large amounts of BTC gains in the past month; a total of 49,728 BTC increase and 20,839 BTC withdrawal was seen in the top 100 richest addresses over the past month, which indicates these bitcoin riches are keeping accumulating BTC.
Though many traders believes in the principle of “buy the dip, sell the rip”, few of them, tortured by FUD (fear, uncertainty and doubt), could make it. As Zhao Dong, a famed Chinese over-the-counter bitcoin trader and self-made crypto billionaire, said,
“Winter has yet to come and spring is still far away. But most investors can hardly get through it.” He even predicted bitcoin would plunge below $4,000 by the end of 2018 this June.