Why do small scale Bitcoin holders panic sale?

[Abu-Naim]

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?

Most times, the small scale Bitcoin holders are short time traders, they don’t have the ability to hold Bitcoin for long, so instead of losing it all they sell to take the little profit they have and wait for another opportunity. They mostly don’t have enough funds to invest more in Bitcoin and they cannot afford to lose what they have already invested which is why the whales are always at advantage because they have money to accumulate Bitcoin whenever they want it.
As a small scale investor who have no enough money to invest in Bitcoin should use DCA method to keep investing instead of selling when the price dip.

[virasog]

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?

Most times, the small scale Bitcoin holders are short time traders, they don’t have the ability to hold Bitcoin for long, so instead of losing it all they sell to take the little profit they have and wait for another opportunity. They mostly don’t have enough funds to invest more in Bitcoin and they cannot afford to lose what they have already invested which is why the whales are always at advantage because they have money to accumulate Bitcoin whenever they want it.
As a small scale investor who have no enough money to invest in Bitcoin should use DCA method to keep investing instead of selling when the price dip.

Another reason and the most relevant is that those are the people who do not have the money to invest in bitcoin but still do it in order to make quick profit and when they see that there are in loss they usually panic sell because they don't have the power to hold. By the way it is not only the small scale investors who sell but also the big whales do sell according to different reasons & conditions and the circumstances for both are different, the whales may sell in order to manipulate the market.

[Stablexcoin]

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?

Small holders are usually the ones who need quick profits to grow their portfolio size. Not everyone but many of them are like this.
So when the market dumps then the small holders get a panic attack since their portfolio keeps decreasing in $ value.
Hence they decide to sell when the market dumps. This might be a good strategy for some of them to keep a stop loss and then buy back later.
But some people lose their money by not buying it back in the dips and instead buying when the market recovers crossing their previously bought price.

This is wrong i believe small portfolio holders are the ones who need to hold onto their Bitcoin for a long so that it will have enough value and focus more on accumulating more Bitcoin. Selling it while the size is small would not yield any good profit at all because the higher the size of your Bitcoin the higher the profit that one should be expecting.

Small scale holder should prioritize how to get some good business or a better job so that they can invest more into their portfolio. 

[alastantiger]

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?

Lack of money and not having patience is the reason people are finding it difficult holding because they invested with the thinking that the market is going to be bullish soon for them to have the opportunity to take profits to use in other things. The small holders don't have money as whales do hence they can't hold like them because they'll have need for money and when there's no money coming from others sources, they'll have to fall back to selling to use the money to solve other problems. Not all the small investors budgeted wrongly that they have to sell to see money to use for other important things but for some, they just got into some life challenges that they didn't have enough emergency money to handle. But after selling and we got some money, it's wise to invest back into Bitcoin because of the future of Bitcoin so we can make more money.

[Hamza2424]

This is wrong i believe small portfolio holders are the ones who need to hold onto their Bitcoin for a long so that it will have enough value and focus more on accumulating more Bitcoin. Selling it while the size is small would not yield any good profit at all because the higher the size of your Bitcoin the higher the profit that one should be expecting.

Small scale holder should prioritize how to get some good business or a better job so that they can invest more into their portfolio. 

Haha so in the end you think it is a money game, yup I can agree with that as well which is a fact to some extent but I've seen people booking loss who own a lot of money and I've seen people making a lot of money with smaller portfolios as well. let me explain it's not wise if you are a small investor to wait for a long time and wait for profits, this strategy should be adopted by newbies and those who dont have time to study the market and can't make regular analyses and adjust positions.

If you are a small portfolio investor and have enough time, to learn about price action and different strategies focus on daily market news and updates, trade, and adjust your positions with a proper strategy you'll end up being a more return-making investor compared to one who just invested and held his funds. DYOR because if you trade there are some potential risks but on a large time frame and with Bitcoin with a strategy, it's super reliable to trade because it's not a meme coin shit.

Be a smart investor rather being a dumb holder.

[Furious 7]

This is wrong i believe small portfolio holders are the ones who need to hold onto their Bitcoin for a long so that it will have enough value and focus more on accumulating more Bitcoin. Selling it while the size is small would not yield any good profit at all because the higher the size of your Bitcoin the higher the profit that one should be expecting.

Small scale holder should prioritize how to get some good business or a better job so that they can invest more into their portfolio. 

It all depends on everyone perspective and views because even though we say that its not right, at the end of the day we can't intervene in what other people do with their portfolios so when they sell or hold its up to them as we can't do much about it.

In addition, sometimes in this case some other considerations such as their goals are already completed because after all ,  even though for a long enough period of time it is advisable for bitcoin but when they have determined the limit of profit or the point where they will exit then it is their decision and it is appropriate for them to leave if their goals have been achieved in this case so I would not blame anyone who wants to get out of bitcoin even though I still avoid it and remain in bitcoin until now .

[albon]

Another reason and the most relevant is that those are the people who do not have the money to invest in bitcoin but still do it in order to make quick profit and when they see that there are in loss they usually panic sell because they don't have the power to hold. By the way it is not only the small scale investors who sell but also the big whales do sell according to different reasons & conditions and the circumstances for both are different, the whales may sell in order to manipulate the market.

Whales are indeed manipulating the market. Some people exploit the promotion of their large holdings that they sold and FOMO to push small investors out of the market and leave their positions that other investors will take. For those looking for quick profits and who don’t have the capital they can afford to lose, investing in Bitcoin will undoubtedly be psychologically challenging; panic selling to make some profit or selling at a loss would be an unwise decision. Bitcoin is not price-stable; it rises and falls based on supply and demand, and many factors influence its price. So, whoever has conviction and faith in the future of Bitcoin will try hard to secure his position in the market, ignore any short-term declines, and consistently seek to increase his holdings with money that he is not in a hurry to profit from.

[nakamura12]

They only want to earn quick profit because if they didn't then they would buy bitcoin instead of selling their holdings. It is also because of lacking money that small scale bitcoin holders aren't able to accumulate more bitcoin whereas whales have every means to accumulate more and have much more understanding than the small scale holders. It could also means that they want to prevent loses and buy once it stop decreasing or let's say whales stop manipulating the market.

[Maslate]

My only point here is if you are well aware on what you are hodling, regardless if you are a big or small scale bitcoin holder, you will never resort into panicking because we all know that will only lead into inevitable mistakes and losses, that will make you fail on achieving your end goal. And most probably, if only we only start to invest using our own spare money, we will never get panic everytime we see our investment price dropping inevitably.

[AmoreJaz]

My only point here is if you are well aware on what you are hodling, regardless if you are a big or small scale bitcoin holder, you will never resort into panicking because we all know that will only lead into inevitable mistakes and losses, that will make you fail on achieving your end goal. And most probably, if only we only start to invest using our own spare money, we will never get panic everytime we see our investment price dropping inevitably.

That I believe is the main reason why most small holders panic - because they did not use their spare money so they have other needs for that money. With such need, they have the tendency to sell it right away and once the price is declining, they are panicking because the value is going down as well.

But if you look at those big holders, even if the price is declining, the tendency of some of them is to accumulate more. So they truly believe this market because they are just waiting for the right timing to discard their coins.

[Stablexcoin]

This is wrong i believe small portfolio holders are the ones who need to hold onto their Bitcoin for a long so that it will have enough value and focus more on accumulating more Bitcoin. Selling it while the size is small would not yield any good profit at all because the higher the size of your Bitcoin the higher the profit that one should be expecting.

Small scale holder should prioritize how to get some good business or a better job so that they can invest more into their portfolio. 

Haha so in the end you think it is a money game, yup I can agree with that as well which is a fact to some extent but I've seen people booking loss who own a lot of money and I've seen people making a lot of money with smaller portfolios as well. let me explain it's not wise if you are a small investor to wait for a long time and wait for profits, this strategy should be adopted by newbies and those who dont have time to study the market and can't make regular analyses and adjust positions.

If you are a small portfolio investor and have enough time, to learn about price action and different strategies focus on daily market news and updates, trade, and adjust your positions with a proper strategy you'll end up being a more return-making investor compared to one who just invested and held his funds. DYOR because if you trade there are some potential risks but on a large time frame and with Bitcoin with a strategy, it's super reliable to trade because it's not a meme coin shit.

Be a smart investor rather being a dumb holder.

Your argument is valid and I am ready to do that with you all day. With what you have said so far you are typically saying that the investor should start trading because if he cant hod his Bitcoin for long then it is obvious that he would have to sell when it is high and buy back when the price is low. Such practices are considered trading as long as it is done in a short period even if it is not in real time. Have you ever considered the odds of the price not going down anymore after an investor sells his Bitcoin? Such events have happened so many times, and even if the price goes down later it might be after some months or weeks. Some investors will be tempted to withdraw their funds after waiting tirelessly for the price to go up, so may be pushed to quit and be satisfied with the profit they have. I still inside that small investors should never think of trading at all. My reason is that if they trade and lose it al they won't have anything in the portfolio but for a huge investor they can trade with a few coins and still have some left which they are willing to hold for a long.

Don't get me wrong I am not saying money is it all. I am saying accumulating is what is importance for those investors with small bugs instead of rushing after profits wth a short leg.

[ChiBitCTy]

Whether it's small scale or large, people tend to panic during downswings, whether it's bitcoin or say something in the traditional stock market because of lack of education, plain and simple.  Anyone with the right amount of knowledge and know how will never panic in a down market because they are always invested in a manner where they are expecting a downfall, meaning they've either got the time to make it back up, or a downswing wont' hurt them too much because they don't have too much "in play".

[Ojima-ojo]

The thing is that Bitcoin holdings have to come with long time of knowing when to sell and when to buy Bitcoin, because the understanding of that term make you stand out whenever the bad market happens, this is so much more that it requires a long term of experience that comes from the various events that could have taken place all through that time, this is very necessary because anything outside experience and proper knowledge, one is ban to suffer alot of negative experience such as panic sell as you said.


But one thing I know is that, only the weak hands panic whenever there is a short term Bitcoin price drop.

[Mame89]

My only point here is if you are well aware on what you are hodling, regardless if you are a big or small scale bitcoin holder, you will never resort into panicking because we all know that will only lead into inevitable mistakes and losses, that will make you fail on achieving your end goal. And most probably, if only we only start to invest using our own spare money, we will never get panic everytime we see our investment price dropping inevitably.

I also have the same view as you. The only reason why they are panic selling is because they may not see the historical facts of bitcoin, the benefits of holding bitcoin for the long term or may be they have prepared a reserve fund to invest so when the price drops they panic.

I think big and small scale investors who have enough knowledge about bitcoin and they invest with good money managers will not panic when there is a price correction. Since they believe that price volatility is a normal thing, they believe that bitcoin price will go up again. In fact, for them the volatile market makes them earn good profits by continuing to buy and buying that dip/correction is the best way to accumulate more bitcoins.

[bhadz]

Whether it's small scale or large, people tend to panic during downswings, whether it's bitcoin or say something in the traditional stock market because of lack of education, plain and simple.  Anyone with the right amount of knowledge and know how will never panic in a down market because they are always invested in a manner where they are expecting a downfall, meaning they've either got the time to make it back up, or a downswing wont' hurt them too much because they don't have too much "in play".

It's normal to have some panic swings whenever the market changes its coarse all of a sudden and then we'll also react on it because our money decreases its value at that moment. Nevertheless, it's true that the knowledgeable and experienced investors won't really react a lot on it. There could be some bit of emotions but then it can be handled flawlessly because they know how to do or should I say that we know what to do and how to react on it. The market swings are pretty much common and there's nothing to be worried with. The small holders tend to panic more because it could be all that they have and I don't see any problem on it nor belittle them with that because everyone was from there.

[SickDayIn]

i dont think weak hands are selling at a loss, they are just the weak hands making minimum profit, but end up aiding the majority to have a raised bottom

things to keep in mind
when weak hands bought at $25k last year and then panic sell at $59k even though they had an opportunity to sell at $70k+ just months ago, those weak hands may have made a profit but not as much as they could make if they held on longer or sold recently... but remember this.. those weak hands had a acquisition cost of $25k.. so when selling the coin the new buyer now has a acquisition cost of $59k. this means the current holder of a specific amount of coin no longer would be willing to sell from $25k+ but would refuse to sell below $59k from now on(for that specific allotment of coin)

when bitcoin transfers to new holders it sets a new support barrier "bottom" (value) that they wont sell below and as such creates a raised value level, which along with the rising mining cost of block reward coin cost also enforces a higher minimum sell price.

as time passes and coins pass different holders, less and less people are willing and able to sell below $25k-$50k which means if for instance $55k becomes the MAJORITY minimum sell price, then the only way is up.

..
i personally still have a hoard of coin from the 2012 days of $6, meaning i can sell at any price between $7+ and profit. however i love the fact that the majority of holders are acquiring coin and setting a new raised bottom of over $50k as it means the chances of the price crashing back to $6 is negligible/near impossible unless the majority were to become idiots and sell at a loss, which would only happen if bitcoin had a huge bug/unfixable problem and majority wanted to escape

Yeah wow, this makes so much sense. You've made me realise what the "support barrier" means now. Great detailed post, thank you for sharing. The new entry price of new holders does provide a lot more support to the coin and makes it stronger, reduces the likelihood it will sell for less.

[Mia Chloe]

Not all small scale bitcoin holders panic when it comes to hodling bitcoin during periods of dips sometimes. Bitcoin holders are of course more confident when they have a larger number of bitcoins sitting in their wallet as hodlings however I don't think it's necessary to panic if you really wish to HODL your coins. Once a while it's okay to check price just to not be kinda clueless about your current hodlings.

If the user makes use of a cold wallet, it's ok to create a watch only wallet to keep watch of your hodlings for any potential threats. Since in the case of a cold wallet you are advised not to visit your seed too frequent to avoid losing your keys to hackers, scammers or malware.

[shield132]

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?

Small-scale holders are usually inexperienced and poor people. Small-scale holders usually buy Bitcoin with all of their deposits, including emergency funds and when Bitcoin's price starts falling, they start to panic and sell immediately with the fear of losing more than they already lost. They completely ignore the long-term effect of holding Bitcoins and don't think about the possible fact that if they stay strong and keep their Bitcoins in their wallet for the next year, they might gain a huge profit.
I was like that too in 2016 but then I learnt from my mistakes and when there is a huge dip, I stay strong and my past experience gives me strong fundamentals in trading. I know that both, fall and rise are temporary and I have to stay strong to survive and profit.

[Fivestar4everMVP]

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?

The reason is basic and very simple to understand, shrimps (as you referred to the small holders as) are not really interested in the long term prospect of bitcoin and it's price, they are simply in for profit, and if paradventure, the market is dropping, they want to quickly sell either to cut their loses, and buy in back when the price of bitcoin have gotten lower, or they sell to take the profit that they have already accumulated, and possibly wait for price to get lower so they can buy in again and wait for another rise to sell.

So in the nutshell, I guess we can just say that holders of small amount of bitcoin are simply trading the spot price of bitcoin, not hodling, it kind of hurts to invest $10 and watch is turn to $5, most especially If the $10 was all you had, you will do everything you can to protect It even if it means selling when price is not moving in the desired direction.

But for someone who invested $5 million dollars, high chance is that that persons has $50 or more millions laying somewhere and even more coming in from businesses and companies, the $5m can drop to $2m and he won't bother about it knowing fully well that he got a good backup.

[SmartGold01]

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?

People with the way they do their investment, there are people who knows the future of bitcoin and what it holds for long run, while there are people who just think bitcoin is just a common assets that could be toyed with without knowing that it would worth something very special in the future. If you look the whales keep expanding there portfolio while the small investors do panic and sell to secure profits.
What just happened is that they are afraid to lose their money and you know as the first time they are investing in bitcoin they don't have much ideas and again, it seems they don't invest with what they can afford to lose because of they do there will be no day they would panicked and sell.