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.
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 :-
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.
