People taking profit is necessary

[suzanne5223]

You have a point, but I don't agree with the idea of having a fixed deposit account for an emergency fund, especially since it is seamless to exchange Bitcoin for fiat.
First, if you're going to use a few BTC for an emergency fund, and the market downtrend, it will only lose a few dollars, or cents, sometimes, if calculated in fiat.

Bitcoin is an extremely volatile asset, the price can spike or plummet at any time with just one negative news. Just like when the tariff war broke out, bitcoin was dumped by more than 30%, falling from $109k to below $75k in just a short period of time. Or during bear season, bitcoin is even dumped by 70-80%. What if your savings or emergency fund were bitcoin or stocks?

Speculative assets like bitcoin and stocks are highly volatile in the short term, don't deny it. It would be wrong to say that we will only lose a few dollars or cents by using bitcoin as an emergency fund, and it would be unwise to use speculative assets as an emergency fund.

Yes, this situation happened in Bitcoin, and will continue to happen in the future. Nevertheless, there is one called taking profit in the Bitcoin market and most Bitcoiners I know this is what they always do this when the market is at the ATH price as preparation for an emergency fund and to also give themselves a nice treat for their long holding.

You have a point, but I don't agree with the idea of having a fixed deposit account for an emergency fund, especially since it is seamless to exchange Bitcoin for fiat.
First, if you're going to use a few BTC for an emergency fund, and the market downtrend, it will only lose a few dollars, or cents, sometimes, if calculated in fiat.

I don't think it will be few dollars but may be few hundred dollars. It depends on how much you hold for an emergency fund.
While everyone has their own budget, it should at least cover 3 to 6 months of your expenses.
So even if you hold, lets say around $2000 in bitcoin and if the price drops 10% then you would still lose $200.

Yes, that's if the BTC is huge but we're talking about crypto set for emergency fund, not that actual holding.

[Becassine]

Resell, perhaps, but it all depends on the level of taxation in your country. If the tax rate is 30% like in France, while it's zero in Germany after a year of ownership for an individual (unless I'm mistaken), that changes the situation a bit...

Now, in fact, it is essential that bitcoins change hands regularly through the resale or purchase of goods, otherwise it will no longer have any interest and will simply die.

[reagansimms]

One thing that everyone says is to keep holding bitcoin no matter what. Even when the price goes down because it will continue to rise and even if it rises keep holding because it will also keep rising.

I don't think everyone says that, controlling your emotions so you don't panic easily when the price drops is very important because the price will go back up. The main reason why investors invest in Bitcoin is because they want to gain profit from the increase in its price, so advice like this (and even if it rises keep holding because it will also keep rising) does not apply to all investors or even very few apply it because each investor has a different strategy.
Bitcoin is not a collectible that must be held forever, there are times when you sell and buy again when the time is right, this is what is called taking advantage of price fluctuations (buy when it is cheap then sell when the price is high).

[KiaKia]

One thing that everyone says is to keep holding bitcoin no matter what. Even when the price goes down because it will continue to rise and even if it rises keep holding because it will also keep rising. The average time coins are held in a wallet has decreased over the past few weeks. While to some this may indicate negative signals, Santiment says that this is necessary to keep a rally alive.

“This adds weight to the argument that the market is in an active phase, and not just being driven by short-term speculation,”

People selling just means that coins are being brought back into circulation and allows the network to grow. Do you agree? I think this is a different approach to what we usually see when people see the price dropping and people taking profit.

The reality is these people saying that you should keep holding are taking advantage of the market, they are not doing what they are preaching, they advice the world to keep buying and holding for long term and they instead sell when the price is very high and wait for some retracement and buy back.

Blackrock goes the ETF route to get more funds, there is nothing more about buying and holding Bitcoin than making more money, instead some people are stupid enough to believe that they are doing the world a favour, some think they are trying to make others rich.

Even Trump supported the motion, he is here for the piece of the pie, he knows how much can be printed from Bitcoin and crypto in general, the wise ones have already stopped fooling themselves, no one is helping anyone to get rich but themselves.

[Marvell1]

The reality is these people saying that you should keep holding are taking advantage of the market, they are not doing what they are preaching, they advice the world to keep buying and holding for long term and they instead sell when the price is very high and wait for some retracement and buy back.

Blackrock goes the ETF route to get more funds, there is nothing more about buying and holding Bitcoin than making more money, instead some people are stupid enough to believe that they are doing the world a favour, some think they are trying to make others rich.

Even Trump supported the motion, he is here for the piece of the pie, he knows how much can be printed from Bitcoin and crypto in general, the wise ones have already stopped fooling themselves, no one is helping anyone to get rich but themselves.

Although bitcoin is a potential and promising asset, but people seem to forget it is also a financial market, and the market is a battlefield. People come here for only one purpose, which is profit and personal gain, they do not come here to do charity and help others become rich. They come to take our money or vice versa.

That's why I'm never interested in predictions like bitcoin will hit $3M or $10M from celebrities, and I never believe in claims that they will never sell their bitcoins...What they do is just because they want more liquidity and sell at a higher price.
 

[batang_bitcoin]

People selling just means that coins are being brought back into circulation and allows the network to grow. Do you agree? I think this is a different approach to what we usually see when people see the price dropping and people taking profit.

I don't mind if people sell or buy. Because for every action that they do, we also have our own take that we should be concerned with. While them, they probably don't mind if the others are also going to sell. But it's true that the coins sold are going back in circulation but the problem is, the institutions are the ones that buys them back and even more. If these institutions are the ones that will get all of the Bitcoins in the circulation, we might have problem in the future of how influential they will be.

[Mame89]

When holding a bitcoin you will have a target when the price will reach and you make a withdrawal, saying that we should continue holding bitcoin I think is not making any sense, anyone that wants to hold Bitcoin should hold Bitcoin and also have a target of withdrawing the profit made, so for me if you make a profit that worth your capital I think you have to withdraw not every holding will lead us into profit, theirs a hold that is called a delay investment depending your target for your investment

I also think the same as you, it feels a bit strange if you hold bitcoin forever, surely every investor has a target when to sell to make a profit because the main goal in investing in bitcoin is to seek profit. So every investor does have their own target after the target is obtained they will definitely sell it, maybe not all of them, but there are also those who then wait for the price to drop and buy again. The point is every investment must have a goal and target without having it we will not know the direction of our investment in the future. Moreover, bitcoin has a cycle, this will be a little easier to determine the target in investing in bitcoin. So investing in bitcoin, taking profit is necessary because that is my main goal in investing in bitcoin.

[m2017]

One thing that everyone says is to keep holding bitcoin no matter what. Even when the price goes down because it will continue to rise and even if it rises keep holding because it will also keep rising. The average time coins are held in a wallet has decreased over the past few weeks. While to some this may indicate negative signals, Santiment says that this is necessary to keep a rally alive.

Why listen to what everyone says? Do what you think is right/profitable for you.

No matter how long you try to artificially rush the "horse", but if the horse is exhausted, then no matter how much you kick it, it will not gallop faster. The rally will last exactly as long as the market has enough fervor.

People selling just means that coins are being brought back into circulation and allows the network to grow. Do you agree? I think this is a different approach to what we usually see when people see the price dropping and people taking profit.

Your question is similar to the classic glass of water question: is the glass half full or half empty?

Whatever the approach, people are selling, not buying, which means they are getting rid of this asset. It doesn't matter what it is connected with, a lack of faith in future growth or a desire to make a profit. The fact remains a fact.

In order for coins to return to circulation, bitcoin should be used as a means of payment (as was intended), and not lie as ballast on investors' wallets (as is happening now).