Why do small scale Bitcoin holders panic sale?

[MeGold666]

Not every sale is a panic sale, smart traders (not holders) are analyzing the market and try to time it right by selling high and re-buying again at lower price.

Some do it manually, other use advanced trading bots powered by AI and models that were trained specifically for it.

I am not a trader my self, I just hold because I believe in future price appreciation on the project I'm in and I don't want to "miss the train" while trading back and forth looking for more gains.

Now if someone sales out of panic, he probably invested more than he can afford to lose.

[tread93]

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?

Hard times and a shitty economy. Wages and earnings and lower and stretch far less forcing some people to dip into their savings and investments just to survive get the bills paid and food in their families belly perhaps in many cases. In other cases people have lost faith or it’s just FUD

[Dzwaafu11]

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?

That is your thought, not their own. The thing is that not all of us can be able to invest and hold for a long time. Some people can hold it, but they cannot endure seeing the price of bitcoin fall when their money is already invested; they find it difficult to hold it. They feel like the price is going to continue falling,

 which is not so, although it may be due to insufficient knowledge of bitcoin investment, but the fact is that many of them hate it when they see the price. Some have the money, but they just invest the amount they can afford to lose; they can’t add more to it, and I can blame them on that; it’s their decision, and that is what they feel like will go well for them. 

[LogitechMouse]

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 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?

There are 2 reasons as to why.
1. These small scale holders that you are saying are probably those newbie investors that are selling their Bitcoin holdings because of the negative news that they saw online, and since they're newbies, they are sometimes panicking therefore, making bad decisions such as selling their tokens at a loss.
2. These small scale holders don't only sell because they panicked. They are selling because they want to take profits. Nothing more.

I just don't like the thinking where you are generalizing us small scale holders that we are panicking most of the time while those who have lots of BTC holding already are continuing to accumulate even more. At the end of the day, we have different strategies, and the strategy of those whales are to continue to accumulate until it reach a certain point where they need to sell their Bitcoins. As for us small scale holders, yes there are some who are panic selling, but can we just think at least for once that we are selling because we are taking profits and not panic selling?

[Sonia_123]

They panic to sell to avoid loss of their funds because they have little or no money to incure their daily expenses and pay their bills.
 Fear of the market price, if it will go below the amount they use in Bitcoin since they have more of their resources in Bitcoin than what they can really get to invest into Bitcoin .
Some persons borrow these money to invest and in other for them to be able to return the money back to their creditor, they tend to panic and sell off to be on a safe side.   

 

[Bd officer]

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?

In my opinion maybe they invest more than they can afford to lose, so they panic and decide to sell bitcoins. Maybe they have less idea about Bitcoin, maybe they don't trust Bitcoin. Those who believe Bitcoin is trustworthy never panic. But not all small investors panic. Those who invest small amounts in the DCA method do not panic when the market goes down but have a long-term plan. Actually investing in Bitcoin should have a long term plan. If you cannot hold bitcoins for the long term, then investing in bitcoins is not for you.