{"id":108482,"date":"2019-11-14T23:30:43","date_gmt":"2019-11-14T18:00:43","guid":{"rendered":"http:\/\/ambcrypto.com\/?p=108482"},"modified":"2019-11-14T19:47:12","modified_gmt":"2019-11-14T14:17:12","slug":"binance-research-advocates-hodling-as-it-analyzes-bitcoins-annualized-returns","status":"publish","type":"post","link":"https:\/\/ambcrypto.com\/binance-research-advocates-hodling-as-it-analyzes-bitcoins-annualized-returns\/","title":{"rendered":"Binance Research advocates #HODLing as it analyzes Bitcoin&#8217;s annualized returns"},"content":{"rendered":"<p>The research team at Malta-based cryptocurrency exchange, Binance, recently released a <a href=\"https:\/\/twitter.com\/BinanceResearch\/status\/1194919127065878529\">chart<\/a>\u00a0regarding the impact of the best performing days on the annualized daily average returns for <a href=\"http:\/\/ambcrypto.com\/category\/bitcoin-news\/\">Bitcoin<\/a>.<\/p>\n<blockquote><p>&#8220;Most of Bitcoin\u2019s upside occurs on very few days \u2014 missing out can be painful. When in doubt, #HODL&#8221;<\/p><\/blockquote>\n<p>According to Binance Research, investors not holding <a href=\"http:\/\/ambcrypto.com\/category\/bitcoin-news\/\">Bitcoin<\/a> on 7 December 2017 missed out on its largest daily absolute gain of $3608, or a ~25% increase in value. The chart showed that excluding just the top-10 best performing days for <a href=\"http:\/\/ambcrypto.com\/category\/bitcoin-news\/\">Bitcoin<\/a> returns since 2013 drops profits by more than 150%.<\/p>\n<p>The returns earned after excluding the best 50 days drop down to 1% of the returns that would have been earned had the investor held <a href=\"http:\/\/ambcrypto.com\/category\/bitcoin-news\/\">Bitcoin<\/a> over the period.<\/p>\n<p>Users on Twitter responded to the team at Binance with mixed opinions, however, with one user pointing out that investors who didn\u2019t sell on 6 January 2018 missed out on shorting <a href=\"http:\/\/ambcrypto.com\/category\/bitcoin-news\/\">Bitcoin<\/a>\u2019s largest monthly drop of 65%. Another user spoke of how these fluctuations showed why stablecoins are needed for the future of blockchain finance.<\/p>\n<p>Around the same time, blockchain market intelligence provider, Glassnode, published a <a href=\"https:\/\/medium.com\/glassnode-insights\/dissecting-bitcoins-unrealised-on-chain-profit-loss-73e735020c8d\">report<\/a> titled, &#8216;Dissecting Bitcoin\u2019s Unrealised On-Chain Profit\/Loss,&#8217; which looked into how much of <a href=\"http:\/\/ambcrypto.com\/category\/bitcoin-news\/\">Bitcoin<\/a>\u2019s circulating supply is in profit or loss at any given point in time, and to what extent. It said,<\/p>\n<blockquote><p>&#8220;If all Bitcoins were sold today, how much would investors stand to gain or lose?&#8221;<\/p><\/blockquote>\n<p>The report used <a href=\"http:\/\/ambcrypto.com\/category\/bitcoin-news\/\">Bitcoin<\/a>\u2019s underlying UTXO structure to compare the value of <a href=\"http:\/\/ambcrypto.com\/category\/bitcoin-news\/\">Bitcoin<\/a> at two different points in time: current price and realized price \u2014 the price at the time a UTXO is created.<\/p>\n<p>The report also noted that the relative number of UTXOs in profit approaches 100% whenever a previous all-time high is broken.<\/p>\n<blockquote><p>&#8220;It becomes nearly impossible to be in losses once a new ATH is surpassed.&#8221;<\/p><\/blockquote>\n<p>Further, Glassnode stated that the three metrics \u2014 the number of UTXOs in profit\/loss, the <a href=\"http:\/\/ambcrypto.com\/category\/bitcoin-news\/\">Bitcoin<\/a> supply in profit\/loss, and the unrealized profit\/loss \u2014 help in understanding the current profit and loss of stakeholders in the <a href=\"http:\/\/ambcrypto.com\/category\/bitcoin-news\/\">Bitcoin<\/a> network using on-chain data, and are indicative of <a href=\"http:\/\/ambcrypto.com\/category\/bitcoin-news\/\">Bitcoin<\/a> market cycles. They also shed light on investor sentiments at different stages, the report said. The report also stated that the 50-day moving average has historically been valuable in avoiding BTC buys towards market tops.<\/p>\n<figure id=\"attachment_108483\" aria-describedby=\"caption-attachment-108483\" style=\"width: 2160px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" class=\"size-full wp-image-108483\" src=\"http:\/\/ambcrypto.com\/wp-content\/uploads\/2019\/11\/Screen-Shot-2019-11-14-at-5.21.35-PM.jpg\" alt=\"\" width=\"2160\" height=\"668\" srcset=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2019\/11\/Screen-Shot-2019-11-14-at-5.21.35-PM.jpg 2160w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2019\/11\/Screen-Shot-2019-11-14-at-5.21.35-PM-300x93.jpg 300w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2019\/11\/Screen-Shot-2019-11-14-at-5.21.35-PM-768x238.jpg 768w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2019\/11\/Screen-Shot-2019-11-14-at-5.21.35-PM-1024x317.jpg 1024w\" sizes=\"(max-width: 2160px) 100vw, 2160px\" \/><figcaption id=\"caption-attachment-108483\" class=\"wp-caption-text\">Source: <a href=\"https:\/\/coinstats.app\/en\/coins\/bitcoin\">CoinStats<\/a><\/figcaption><\/figure>\n<p>To #HODL or not to #HODL? It\u2019s no secret that <a href=\"http:\/\/ambcrypto.com\/category\/bitcoin-news\/\">Bitcoin<\/a> is considered to be a risky investment, with its value dropping by as much as 3.6% over the last three days. At the time of writing, Bitcoin was priced at $8716.<\/p>\n<p>It&#8217;s easier to see these trends and advocate positions in hindsight, and as time passes, if more research is conducted and new metrics are created, perhaps investors will eventually be able to move away from speculating on <a href=\"http:\/\/ambcrypto.com\/category\/bitcoin-news\/\">Bitcoin<\/a> and move towards investing in it.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The research team at Malta-based cryptocurrency exchange, Binance, recently released a chart\u00a0regarding the impact of the best performing days on the annualized daily average returns for Bitcoin. &#8220;Most of Bitcoin\u2019s upside occurs on very few days \u2014 missing out can be painful. When in doubt, #HODL&#8221; According to Binance Research, investors not holding Bitcoin on<a href=\"https:\/\/ambcrypto.com\/binance-research-advocates-hodling-as-it-analyzes-bitcoins-annualized-returns\/\">Continue reading <span class=\"sr-only\">&#8220;Binance Research advocates #HODLing as it analyzes Bitcoin&#8217;s annualized returns&#8221;<\/span><\/a><\/p>\n","protected":false},"author":24,"featured_media":108486,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"footnotes":""},"categories":[35,3,4,20],"tags":[],"class_list":["post-108482","post","type-post","status-publish","format-standard","has-post-thumbnail","category-bitcoin-news","category-news","category-social","category-trading-view"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.0 (Yoast SEO v28.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Binance Research advocates #HODLing as it analyzes Bitcoin&#039;s annualized returns - AMBCrypto<\/title>\n<meta name=\"description\" content=\"According to Binance Research, investors not holding Bitcoin on December 7, 2017 missed out on its largest daily absolute gain of ~25%.....\" \/>\n<meta name=\"robots\" content=\"index, follow, max-image-preview:large\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ambcrypto.com\/binance-research-advocates-hodling-as-it-analyzes-bitcoins-annualized-returns\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Binance Research advocates #HODLing as it analyzes Bitcoin&#039;s annualized returns - AMBCrypto\" \/>\n<meta property=\"og:description\" content=\"The research team at Malta-based cryptocurrency exchange, Binance, recently released a chart\u00a0regarding the impact of the best performing days on the\" \/>\n<meta property=\"og:url\" content=\"https:\/\/ambcrypto.com\/binance-research-advocates-hodling-as-it-analyzes-bitcoins-annualized-returns\/\" \/>\n<meta property=\"og:site_name\" content=\"AMBCrypto\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/cryptoamb\" \/>\n<meta property=\"article:published_time\" content=\"2019-11-14T18:00:43+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2019\/11\/hunters-race-MYbhN8KaaEc-unsplash.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"900\" \/>\n\t<meta property=\"og:image:height\" content=\"600\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Manu Naik\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@https:\/\/twitter.com\/atomicoblivion\" \/>\n<meta name=\"twitter:site\" content=\"@CryptoAmb\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Manu Naik\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\\\/\\\/ambcrypto.com\\\/binance-research-advocates-hodling-as-it-analyzes-bitcoins-annualized-returns\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/ambcrypto.com\\\/binance-research-advocates-hodling-as-it-analyzes-bitcoins-annualized-returns\\\/\"},\"author\":{\"name\":\"Manu Naik\",\"@id\":\"https:\\\/\\\/ambcrypto.com\\\/#\\\/schema\\\/person\\\/cc307809cd385e7d9c842ccd578a92a2\"},\"headline\":\"Binance Research advocates #HODLing as it analyzes Bitcoin&#8217;s annualized returns\",\"datePublished\":\"2019-11-14T18:00:43+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/ambcrypto.com\\\/binance-research-advocates-hodling-as-it-analyzes-bitcoins-annualized-returns\\\/\"},\"wordCount\":490,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/ambcrypto.com\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/ambcrypto.com\\\/binance-research-advocates-hodling-as-it-analyzes-bitcoins-annualized-returns\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/ambcrypto.com\\\/wp-content\\\/uploads\\\/2019\\\/11\\\/hunters-race-MYbhN8KaaEc-unsplash.jpg\",\"articleSection\":[\"Bitcoin\",\"News 1\",\"Social\",\"Trading View\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/ambcrypto.com\\\/binance-research-advocates-hodling-as-it-analyzes-bitcoins-annualized-returns\\\/#respond\"]}],\"copyrightYear\":\"2019\",\"copyrightHolder\":{\"@id\":\"https:\\\/\\\/ambcrypto.com\\\/#organization\"}},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/ambcrypto.com\\\/binance-research-advocates-hodling-as-it-analyzes-bitcoins-annualized-returns\\\/\",\"url\":\"https:\\\/\\\/ambcrypto.com\\\/binance-research-advocates-hodling-as-it-analyzes-bitcoins-annualized-returns\\\/\",\"name\":\"Binance Research advocates #HODLing as it analyzes Bitcoin's annualized returns - 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