Weak hands. Binance Academy defines “weak hands” as this:
A term used to describe a trader or investor that lacks the confidence, resources, or ability to hold their positions or to stick with their trading plans.
Because Elon Musk tweeted a meme.
Everybody loves to say stuff like “If Elon can tank the crypto markets with one tweet then how strong is this stuff, really?”
The question everybody should be asking is, “If Elon can tank the crypto markets with one tweet then how strong are the beliefs of these traders?”
The thing is, Elon’s tweets have absolutely zero effect on the actual utility of Bitcoin. The tweets are just scaring off a bunch of “weak hands.” The core value prop of Bitcoin doesn’t rise or fall with Elon’s tweets — but the perceived value certainly does.
Isn’t that precisely what makes for good opportunities in the market?
A stark difference between actual value and perceived value?
When a company’s stock is undervalued, that’s a hell of a buying opportunity for investors. With so much stupidity and ignorance running rampant among Bitcoin investors, I can’t help but feel there’s a gaping divide between actual value and perceived value right now.
