Reddit’s calls to “HODL” cryptocurrency: do they work?
Since Bitcoin lost roughly 60 percent of its value back at the beginning of February — dipping down to around $8,000 following December’s record high of $19,000 — Reddit’s various cryptocurrency subs have become a wonderful mess of schadenfreude-esque pain and suffering. From r/bitcoin to r/cryptocurrency to whatever the hell r/cryptoanarchy is, Redditors just can’t seem to cut their losses and pull out of the tanking cryptocurrency market, instead opting to HODL (a misspelling of ‘HOLD’ that the community has somewhat-ironically adopted as slang) on to their investments in the hopes of better days.
“Anecdotally, I’ve noticed a flood of of HODL mentions in the past year,” wrote Anthony Xie, creator of the HODL bot (a bot which, well, HODLs things), in a Medium post. “So I decided to analyze every Reddit comment mentioning ‘HODL’ to examine the relationship of HODL vs. the total value of the cryptocurrency market over time (market capitalization).” Though Xie went into the project expecting to see a correlation between market losses and HODL mentions (as HODL is associated with rough times), he noticed that HODL mentions increased in both good times and bad.
In the wake of Bitcoin’s massive crash earlier this year, HODL has become even more of a mantra for the almost disconcertingly positive commenters in Reddit’s many cryptocurrency communities. Scroll through any of the subs when the market is volatile (a.k.a., most days), and you’ll see a flood of seemingly inspirational calls to HODL.
Though, the worst may be behind us. According to Xie’s research, Redditors may be suffering from “HODL fatigue,” meaning HODL-free days could be an actual possibility.