Financial Market Commentators often talk about “Cash on the Sidelines” when mainstream markets go through a bit of an extended Bear Market. It’s a reference to investors parking their wealth in Cash because they don’t want to be invested in Assets that are going down in Price. Inevitably when the markets bottom out and turn upwards that Cash comes OFF the sidelines and re-invests back into Asset Markets giving the early spark to establish the next Bull Run.
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For HIVE, and Crypto Markets broadly, we have just had an extended Bear Market and what I also call a Consolidation throughout 2023. During 2022 HIVE dropped from about $1.50 and then started 2023 at about 26 cents. For most of 2022 it has bounced around Consolidating but we have some renewed buying of HIVE in the last month. Check out the chart below :-
Source
After a classic Double Bottom at about 26.5 cents in early September 2023 HIVE has spent the last 2 months establishing a new uptrend so we might expect to see some Cash coming off the sidelines very soon to support the start of a new Bull Market....which brings me to the point of my post.
HIVE has it’s own stable coin called HBD (Hive Backed Dollars). It is basically a built-in mechanism for Crypto users to park cash on the sidelines and over the course of the Bear Market and Consolidation of the last 2 years HBD has been a very smart place to park Crypto wealth while things have been quiet. The smart money in HBD has been able to earn 20% APR by holding their HBD in Savings. But how long is that HBD going to stay in Savings if a new Bull Market is starting up?
The first place that HBD sitting on the sidelines is going to go is into HIVE. Earning 20% on HBD is attractive but it’s nothing compared to the upside potential of un-pegged Cryptos like HIVE when they are trending UP. Therefore it is very possible that HIVE may be one of the early movers of the next Bull Market as a result of the wealth that has parked in HBD over the last 2 years so keep your eyes open and Buckle Up. This could get very interesting, very quickly.
It's hard to keep cash parked in HBD when the price of Hive is so attractive! I keep swapping my HBD into HIVE. I will likely do the opposite if the price of Hive gets above $1 in the near future. I might even do a power down to take some gains. I will have to wait and see. Next Bear for sure I will have gains parked in HBD!
Good move! I always say even if magically we could depend on 20% rate, Hive going to a dollar in next few years will bring more growth dollar value wise then holding HBD.
This sounds like smart thinking to me. I'll be trying to do something similar if I can get the timing right.
Right? I bought all the $HIVE I could afford and converted every bit of $HBD from post rewards to $HIVE while it was around the $0.30 mark. IF it goes over $1, I'll consider taking some gains and saving some dry powder for the next bear.
A very sound plan! Sounds about like what I am doing or will do.
But on the other hand, as hive goes up, hbd printer goes up to pay authors which means more hive inflation, even if it's indirect. No?
!DHEDGE
More nominal HBD gets printed, yes, however the relative value of the HBD (and it's debt to the ecosystem) declines as HIVE rises in price.
Besides, many astute authors choose to get their rewards as 100% HIVE (instead of 50/50) when the market starts booming and in that case, there is no additional HBD printed...
more HBD and moar Hive please
Going to be interesting once Hive hits over $0.50 and remains above it for a period of time. That's the current threshold I'm looking at before hive is looking healthy again. At this rate we could see that by end of this month.
Yes, I see resistance at $0.50 so not expecting that level to crack any time soon....but when it does, look out because the Bull Market will be back.
I hope HBD will still be offering that juicy 20% APR in the next bear market cu I sure plan on parking some cash aside for a couple of years until the next bear market and for now I see no better option than HBD for that.
20% won’t be here for years and years. We just not expect it. Otherwise it will be disappointing…
I hope it will not go away soon.
I think it will possibly even go higher in the next bull run. As the HIVE price goes up the debt level in % actually drops and the witnesses will probably try to incentivize more people to put HBD in savings with an even higher rate.
HBD is a hidden gem even inside the Hive ecosystem. for me it's one the best ways to earn a passive income in general. I hope the 20% will remain though, what are your thoughts on that?
Regarding Hive, 0.3-0.4 cents is still nothing in my eyes for this amazing platform and ecosystem. Easily could have been in top 10-50 cryptos out there but we lack a good marketing strategy i think. Still given the thousands cryptos out there hive has multiple things to offer in my opinion to different types of people!
Totally agree. I think the stablecoin in this ecosystem has enormous potential to be a very useful transactional currency.
I personally think the 20% goes higher in the next Bull Market as the % debt level drops.
That is a very good point l, I am lucky I took out my hbd savings and bought hive instead in the beginning of last month before we started to see all this action
Good breakdown! Good point on the double bottom! I think it’s mostly just following bitcoin as most cryptos and unfortunately less return then bitcoin on yearly and monthly but still nice seeing Hive up indeed! Cheers!
!PIMP
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The worth of stable coin is realized when the market hits the bottom. Countless times, the situation came to my doorstep lol. But I must say, HBD as a pegged currency and that even paying a good APR is one of the best thing that we can find among stables. Also the constant worry that has been arising about stables such as USDT, BUSD is close to none in HBD. I guess, in next bear market I will probably stack into HBD and just enjoy the APR through the winter. But for now, I am into HIVE!!!
Guess we will see soon enough.
Hive has been growing slowly and now it's closed to $0.4 but not sure if it's the start of bullrun. People are buying hive and this price is not less an opportunity. Also for HBD, it's a great part to invest on because we can earn 20% and this is something not available in the market
Seems to just be moving with the crypto market overall following bitcoin but less so. Year to date hive has underperformed and also monthly. It’s nice seeing it higher but it doesn’t seem to be because of anything hive related but just the market makers buying all cryptos in Sams direction as bitcoin moves up..
Yeah more than often I'm not sure whether I want to stack HBD but the returns are insane good!!!! So from the start of next year I think I'll be pumping a steady 25 usd into it... See what we can have after a year of pumping that in hey!
!PIZZA
!LUV
I'm way ahead of you, already started convert HBD to Hive.
Cash (HBD) being a king enough in these 2 years, time to ask it to take a rest and let the token be the king again.
Every now and then HBD breaks above the $1 mark and when it does I buy some more HIVE. Conversely when HBD drops below $1 I sell some Hive for HBD.
I know that may be only two or three points on the trade but so long as the system is working it is a guaranteed return.
Which market do you use for this?
The internal Hive market.
The returns on HBD is very cool
I don't have much though because my ficus noe is on powering up
Imma stack HBD later
If hive just doubles In next few years the return will be greater then holding HBD. I think ur doing smart thing!
"Therefore it is very possible that HIVE may be one of the early movers of the next Bull Market as a result of the wealth that has parked in HBD over the last 2 years. . ."
I love to see how this thing will turn out in months to come. . .
Thanks for the good news. All hands should be on the deck for better market that will soon come. We should all be vigilant.
Interesting , and in truth there should likely be indeed those caliber of an investor's who doesn't want to take chances . Don't actually too trust the crypto currency potency citing bear market duration but only love to gain whole lots that bull run duration can last. Hope to experience Hive bull as said. Thank you for sharing.
Great return 👍
Hive is surely on it's way to break it's previous all time high and it will make a new all time high, and HBD is gonna help a lot.
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Great article!
Is in line with my strategy as well. I am collecting as much Hive as possible for the moment and as soon as its price goes over $1, I'll start to convert it into hbd to than start receiving the 20% apr :D
Hive and its ecosystem is so awesome! :D