TL:DR Version
There are many reasons why you may want to consider selling your Bitcoin, namely $2.4bn if Bitcoin’s futures just expired… Will the new owners sell for a quick fast profit, or hold? What they decide may have a serious impact on BTC value.
So, if you’re looking for long term investment & are not worried about (potentially) short to long term losses, then maybe hold.
Conversely, if you are not investing in Bitcoin for the long haul, and are worried about a period of substantial instability, NOW (before Jan 1st) may be a good time to sell.
What Are Bitcoin Futures?
A Bitcoin future trade, essentially allows investors to sell and buy Bitcoin at future dates and an agreed price that is set now. A futures contract is an agreement between two parties who intend to buy and sell Bitcoin at a preplanned price and a specific date in the future. Around $2.4 BILLION in BTC is set to expire on the 25th of December. The effect this will have on the value of Bitcoin is unknown. Perhaps, then, you should sell?
What ‘Type’ of Bitcoin Investor Are You?
If you are a die-hard long-term BTC investor who is happy for the value of your BTC holdings to take a plummet, potentially for some time, knowing (or, believing) that the value will rise again, then you may not be too concerned.
However, if you’re looking to profit in the short or even medium-term, it may be a good time to sell your BTC – Or at least some of them.
Sell During The Bull?
There is no doubt that BTC is seeing a Bull phase right now. Value is at a high, and if you purchased BTC prior to this current Bull period, it may be wise to offload at least some of your Bitcoin holdings, to balance the risks (keeping at least SOME Bitcoin will mean you get the best of both worlds – Some BTC should the value increase in the future, whilst making a neat profit and seeing the color of your (fiat) money in the short-term.
It is difficult to predict the outcome and price of Bitcoin after the pandemic and the effect the future expiry will have on the Bitcoin, however, the Bitcoin value’s current surge has only paved the way for more enormous profits for the Bitcoin prospective investors, especially if they decide to sell a small percentage or all their Bitcoin.
What do you think?
Will you hold on to your BTC, sell them all, or sell a percentage to balance short-term profits vs risks?