Why do small scale Bitcoin holders panic sale?

[Princess Leah]

 I've come across several Bitcoin news channels and groups talking about whales accumulating more bitcoin and small holders panic selling, the recent one that got me curious is a news from (Crypto Insider) a Cryptocurrency news channels on telegram that's said, in August alone about 283 or more wallets surpassed the 100 $BTC mark.

 It further stated there that in total, over the past 30 days wallets with the balance 10 to 10,000 $BTC have accumulated over 100k $BTC worth about $7.6b and that has got me curious as to why the small scale holders do panic and sale instead of holding whereas those who got more than enough are seriously accumulating more.

 My thought is that, why can't they emulate those whales in holding or accumulating more , is it that they lack the funds to accumulate more, or they don't trust Bitcoin, or they went into the market without any idea of how Bitcoin operates, what do you think could be the reason why shrimps panic sale instead of accumulating like whales?

[Hewlet]

 My thought is that, why can't they emulate those whales in holding or accumulating more , is it that they lack the funds to accumulate more, or they don't trust Bitcoin, or they went into the market without any idea of how Bitcoin operates, what do you think could be the reason why shrimps panic sale instead of accumulating like whales?

every one has the plan they're working with and that's what generally determine when they buy or sell  Bitcoin. The big whales or huge holders are probably institutions, government or individual that are very Bouyant financially. For them, thier Bitcoin holdings serves as a reserve that stores thier wealth and so they can afford to keep holding and not sell it too soon regardless of being in profit. The small scale Bitcoin holders are mostly into trading and takes out profit at any slight opportunity but still reinvest it into Bitcoin again. They are the reason for the daily buys and sells of Bitcoin that makes it volatile. Also, Bitcoin is not just a store of value but is also a medium of exchange. People still make use of it for transactions and for making payment. A typical case is what's happening in the forum where campign managers moves Bitcoin week after week into different wallets of participant of a particular campaign. The block will record it as a sell and you might think the holders of the escrew isn't wise for not holding the Bitcoin. The purpose in that context is for payment of campaigners and that also happens in different areas and form. This is just my thought on this.

[Die_empty]

My thought is that, why can't they emulate those whales in holding or accumulating more , is it that they lack the funds to accumulate more, or they don't trust Bitcoin, or they went into the market without any idea of how Bitcoin operates, what do you think could be the reason why shrimps panic sale instead of accumulating like whales?

Whales understand the market more than some people who just want to make a fast profit. Big investors hire sound crypto analysts who give them all the information they need to make decisions. While those who see Bitcoin as a get-rich-quick scheme feed themselves with information from social media.

Some hodlers don't have emergency funds, so they panic sell to cover expenses even when they are not in profit. While big investors have the financial strength to accumulate as much as possible without problems.

Most of these big businesses have insiders in the government, so they are always the first to get hints about the policy direction of the government.

But not all small hodlers panic or sell their coins prematurely. Many of them have been brave enough to keep their coins regardless of FUD going around. Only the weak hands sell because of a price drop.

[Apocollapse]

Simply because they don't trust in Bitcoin, they only try to earn quick profit from Bitcoin, usually they trade using high leverage, that's why small price movement can affect a lot to their portfolio.

Whales understand the market more than some people who just want to make a fast profit. Big investors hire sound crypto analysts who give them all the information they need to make decisions.

Whales is already rich, they don't have to looking for fast profit because they already have many source of incomes. Whales treat Bitcoin and any other assets as investment, while the poor treat Bitcoin as a way to change their life.

[Majestic-milf]

 I agree with @Die_empty's take in the second paragraph and if you carefully check why some people go into Bitcoin investment, you'd discover that many of them do this not because they want in their portfolio, but rather, a means to make quick money and if in a situation where it hits the target they set for it, they hurriedly sell off since they know it can quickly drop just as it rose so there you have it.
 You also called them small scale holders which means they do not have a mond to watch it mature unlike the long term holders.

[Dr.Bitcoin_Strange]

Everyone (investors) is not the same and doesn't have the same occupation, pocket size and financial status. I know someone who is a trader, makes more than $5k every month, also there's someone that receives about $1k as salary every month, that's to say that people have different financial status and for people that is not earning big, they tend to only invest a small amount that they can risk to lose or sell when the market is going against them. You can't blame them, some of them doesn't also have enough knowledge about Bitcoin investment.

[hd49728]

My thought is that, why can't they emulate those whales in holding or accumulating more , is it that they lack the funds to accumulate more, or they don't trust Bitcoin, or they went into the market without any idea of how Bitcoin operates, what do you think could be the reason why shrimps panic sale instead of accumulating like whales?

You can not be me, and I can not be you. We are different people, with so many different things including ages, experience, knowledge, social and economical status and more. By having different backgrounds, most of us don't think the same.

In investment, newbie and experience investors have big difference as well as big and small investors. Asking small, retail investors to react similarly to whales is very tough call. Some can do it but most of them can not do it but it's natural in the market that is made by many components, from whale, institutional investors to small, retail investors, experienced and newbie investors.

If you can invest money in Bitcoin with right method, for example Dollar Cost Averaging, you will have good chance to get profit. It's the bottom line for your investment success.

[goldkingcoiner]

I've come across several Bitcoin news channels and groups talking about whales accumulating more bitcoin and small holders panic selling, the recent one that got me curious is a news from (Crypto Insider) a Cryptocurrency news channels on telegram that's said, in August alone about 283 or more wallets surpassed the 100 $BTC mark.

 It further stated there that in total, over the past 30 days wallets with the balance 10 to 10,000 $BTC have accumulated over 100k $BTC worth about $7.6b and that has got me curious as to why the small scale holders do panic and sale instead of holding whereas those who got more than enough are seriously accumulating more.

 My thought is that, why can't they emulate those whales in holding or accumulating more , is it that they lack the funds to accumulate more, or they don't trust Bitcoin, or they went into the market without any idea of how Bitcoin operates, what do you think could be the reason why shrimps panic sale instead of accumulating like whales?

I think it is because small scale holder are usually newbies and as we all know, newbies are very prone to panic. In fact, panicking newbies is the profit scheme traders. When someone loses, someone else wins.

But usually the newbies learn their lesson. I remember when I was a newbie and panic sold every so often during volatile, scary market moments.

I like to view the losses as "education fees". So if anyone panic sells, don't feel bad, just learn something out of it.

[hugeblack]

All these numbers are estimates, so it is not possible to determine the buying or selling from blockchain data, and a lot of trading takes place within centralized platforms. The best that can be said is that panic occurs when Bitcoin breaks two support or resistance level, and then we will see clear selling from retail traders.

[Ishicryptic]

 My thought is that, why can't they emulate those whales in holding or accumulating more , is it that they lack the funds to accumulate more, or they don't trust Bitcoin, or they went into the market without any idea of how Bitcoin operates, what do you think could be the reason why shrimps panic sale instead of accumulating like whales?

Small scale Bitcoin holders panic and sale for two reasons one is because of lack of proper knowledge about how Bitcoin works, when they notice the value of their BTC decreasing on the Blockchain, they will naturally panic. It takes knowledge and experience of how Bitcoin works not to panic and sale when because they will think that the their BTC will soon vanish. Proper knowledge will make a hodler to understand about pump and dump that after dip price will recover and increase.

Another reason why small scale Bitcoin holders will panic to sale is because of lack of money, somebody who depends on the profits of Bitcoin investment to survive will naturally panic and sale when it begins to dip. Unlike the whales who are very rich and are not bothered about dip because they are holding for long term until they are prepared to offload their bags. Lack of money can make people to take rational decisions to sale and survive, not that they don't know that it's better to keep holding their Bitcoin for long term.

[Die_empty]

Whales understand the market more than some people who just want to make a fast profit. Big investors hire sound crypto analysts who give them all the information they need to make decisions.

Whales is already rich, they don't have to looking for fast profit because they already have many source of incomes. Whales treat Bitcoin and any other assets as investment, while the poor treat Bitcoin as a way to change their life.

I never said whales are investing in Bitcoin to make fast returns. My explanation is that these big investors are not like inexperienced small investors whose main aim for investing is to make quick profit. Whales are rich investors that have long-term investment goals because they can afford it.

All these numbers are estimates, so it is not possible to determine the buying or selling from blockchain data, and a lot of trading takes place within centralized platforms. The best that can be said is that panic occurs when Bitcoin breaks two support or resistance level, and then we will see clear selling from retail traders.

You are right. Some process collection and analysis of data for these assumptions are not reliable. Most of these estimations come from observations and the process could be faulty.

[DeathAngel]

It’s part of human psychology I guess, people panic when they think they are making losses. It will never stop & it’s not only Bitcoin, weak hands exist in all areas of investing. Short term price movements are just noose, hold your bags & don’t get shaken out. The price will rise in Q4, do not worry.

[ultrloa]

I've come across several Bitcoin news channels and groups talking about whales accumulating more bitcoin and small holders panic selling, the recent one that got me curious is a news from (Crypto Insider) a Cryptocurrency news channels on telegram that's said, in August alone about 283 or more wallets surpassed the 100 $BTC mark.

 It further stated there that in total, over the past 30 days wallets with the balance 10 to 10,000 $BTC have accumulated over 100k $BTC worth about $7.6b and that has got me curious as to why the small scale holders do panic and sale instead of holding whereas those who got more than enough are seriously accumulating more.

 My thought is that, why can't they emulate those whales in holding or accumulating more , is it that they lack the funds to accumulate more, or they don't trust Bitcoin, or they went into the market without any idea of how Bitcoin operates, what do you think could be the reason why shrimps panic sale instead of accumulating like whales?

They can emulate what does whales  do because they don't have money to spend. Those amount they currently spend for bitcoin investment is what they have that's the reason why they get panic when there's dumping condition happen since they can't afford to see the value of their accumulated bitcoin is decreasing and what these people usually think that doing cut loss is always the best decision they could do. This also shows lack of experience since if they have long exposure with bitcoin and now this scene which price dumping of bitcoin happen for sure they will never get panic an let those events happen since they know that bitcoin will recover.

[Fundamentals Of]

There must be more than just one reason. But I'm sure there are many who sold not because of anything else but purely due to panic. The market can't shake them off for good. There will always be sheep and weak hands in the community who don't care whether they're losing for as long as they can escape what worse things might come next.

Aside from weak hands and panic-stricken sellers, there might also be others who are simply risk averse and who prefer to avoid risking further. We can understand them because they might not have much unlike those rich whales who can afford to absorb big losses.

[ethereumhunter]

They can not emulate those whales but they can still hold their Bitcoin and not panic with anything happen to the market. But many small scale holders can not hold their emotion when they see the market bleeding and they think that Bitcoin will going to do down furthermore. They are not think that Bitcoin will be rise up and start increase but that triggers them to sell their Bitcoin and thinks that they can buy back again in a lower price. Maybe they can do that but that will not guarantee them to gets the lower price since they don't know when the price will stop to go down and start increase.

They need to hold their feeling in the bloody market so they can still search for a chance to buy back Bitcoin without selling their Bitcoin. The down of the price will be their time to buy more Bitcoin so they must not be late to do that if they want to accumulate more Bitcoin.

[Pandu Geddon]

My thought is that, why can't they emulate those whales in holding or accumulating more , is it that they lack the funds to accumulate more, or they don't trust Bitcoin, or they went into the market without any idea of how Bitcoin operates, what do you think could be the reason why shrimps panic sale instead of accumulating like whales?

The simplest reason is definitely a lack of knowledge. Small Bitcoin holders can be people who are new to Bitcoin and starting their investment. without a good understanding of the market, of course, seeing the value of their assets drop in large numbers creates panic. the worry is that the value will not be able to return.
Another reason is the need that forces investors to sell some of the Bitcoin they own even though the value is falling. we never know the difficult times that each person is going through.

Actually, novice investors must know that long-term Bitcoin investment will be more profitable. but for those who are less experienced, panic is natural in investing. you can plan your investment well, but when you are inexperienced, everything can mess up your plans.

[stomachgrowls]

 My thought is that, why can't they emulate those whales in holding or accumulating more , is it that they lack the funds to accumulate more, or they don't trust Bitcoin, or they went into the market without any idea of how Bitcoin operates, what do you think could be the reason why shrimps panic sale instead of accumulating like whales?

Small scale Bitcoin holders panic and sale for two reasons one is because of lack of proper knowledge about how Bitcoin works, when they notice the value of their BTC decreasing on the Blockchain, they will naturally panic. It takes knowledge and experience of how Bitcoin works not to panic and sale when because they will think that the their BTC will soon vanish. Proper knowledge will make a hodler to understand about pump and dump that after dip price will recover and increase.

Another reason why small scale Bitcoin holders will panic to sale is because of lack of money, somebody who depends on the profits of Bitcoin investment to survive will naturally panic and sale when it begins to dip. Unlike the whales who are very rich and are not bothered about dip because they are holding for long term until they are prepared to offload their bags. Lack of money can make people to take rational decisions to sale and survive, not that they don't know that it's better to keep holding their Bitcoin for long term.

Lack of proper knowledge and experience on which this is the main reason on why they do really panic out on the time or moment that the market price would really be that going down. This is why it is really that important for you to have that awareness and experience at least for you to have that kind of sustain on the time that you would really be dealing up with this crypto space. You would definitely make yourself having that kind of panic selling on the time that you dont know on what you would gonna do and this is why its really that important that self awareness on what are the things you are doing is the key for you to have that kind of good handling towards self because once you do missed out on doing so then you would really be that impulsive on the things on what you should gonna do.

This is why its really that important that you should really be wary on the actions that you are taking. It would be always recommended that you should really be assessing out different market conditions
and since you are already wary on the possible actions that you would be taking then the best approach is to make yourself act according into your own knowledge.

[Poker Player]

It’s part of human psychology I guess, people panic when they think they are making losses. It will never stop & it’s not only Bitcoin, weak hands exist in all areas of investing. Short term price movements are just noose, hold your bags & don’t get shaken out. The price will rise in Q4, do not worry.

That's exactly what I was thinking. It's just that some people are like that and that's all there is to it. They buy at highs and sell at a loss when it goes down because they get scared. Some can learn and change with time but there are people who get carried away by their emotions like that and there is no need to give it another thought.

[pooya87]

Because they are "weak hands", if they weren't weak they would have been capable of accumulating more bitcoin instead of keep losing money with their bad/weak decisions. Such people rarely investigate what they are investing into, they just read something on the internet (like someone got rich of bitcoin) and they jump on board thinking if they buy a little bit of bitcoin they can too become super rich. But since they don't even know what bitcoin is, they panic sell as soon as there is a small drop. Specially if that drop is accompanied by a lot of FUD.

[tranthidung]

Because they are "weak hands", if they weren't weak they would have been capable of accumulating more bitcoin instead of keep losing money with their bad/weak decisions. Such people rarely investigate what they are investing into, they just read something on the internet (like someone got rich of bitcoin) and they jump on board thinking if they buy a little bit of bitcoin they can too become super rich. But since they don't even know what bitcoin is, they panic sell as soon as there is a small drop. Specially if that drop is accompanied by a lot of FUD.

They have weak hands mainly because they lack of knowledge and experience. Knowledge can be improved easily by learning and experience needs time of living in this market.

About knowledge, I can help them if they're ready for learning.

• Bitcoin price history, ATHs and bottoms.
• Bitcoin bull market drawdowns are helpful and very relevant to current period too.
  
  • https://studio.glassnode.com/workbench/bf532ce2-a66b-4798-6deb-bf3ba7decc59
  • https://cryptoquant.com/community/dashboard/650de954ca432c72d6ef82b1. Create an free account on Crypto Quant and get access to this dashboard.
  • https://charts.bitbo.io/price-drawdown-from-all-time-high/