- Reddit recently lightened its crypto portfolio.
- The platform has been subtly distancing from crypto in recent months.
- Bitcoin has enjoyed a strong upswing in the closing days of October.
Reddit , the popular social networking platform, has long championed a pro-crypto stance, even becoming one of the go-to hubs for industry discussions. Over the years, the platform has embraced crypto-driven initiatives such as rewards programs and NFT sales , solidifying its reputation as an industry-friendly social hub.
However, the platform has recently started to step back from its crypto focus, winding down some of its initiatives , and its latest shift may have come at a cost.
Reddit Dumps Bitcoin Bag Pre-Surge
A filing with the U.S. Securities and Exchange Commission has revealed how the timing of Reddit’s latest pullback from crypto may have caused it to miss out on a critical market moment. Per the document , Reddit recently offloaded the majority of its crypto portfolio, consisting primarily of Bitcoin (BTC) and Ethereum (ETH) .
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The sell-off lasted three months and ended around September 30, 2024. While portfolio adjustments are not unusual, the timing of Reddit’s crypto sale has captured attention, especially since it occurred shortly before Bitcoin’s rally.
Reddit’s report indicates that the sale happened between July and September. During this time, BTC was hovering around $56,000 to $65,000, significantly below its current $70,000 price point. Bitcoin’s price increase comes amid its ongoing rally , which has brought the crypto market giant up to several-month highs, reaching a $73,400 peak.
The community hub asserted that the sale was “immaterial,” indicating that the realized value was insignificant. However, the figures indicate that Reddit may have missed out on an additional gain of around 19% on its holdings by selling during that period, especially in light of BTC’s recent rise.
BTC Revives ‘Uptober’ with Fresh Gains
Bitcoin recently surprised the crypto market by overturning its months-long sluggish narrative with a fresh rally. The uptick in price marked a significant shift for the broader market, especially as the anticipated ‘Uptober’ had previously taken an unexpected turn .
Although the crypto king’s peak during this uptrend remains below its $73,780 all-time high, market confidence is strong that the present momentum will drive it to reach and surpass that mark.
At press time, Bitcoin is trading at $72,367, reflecting gains of 8% over the last seven days and 14% over the past 30 days.
On the Flipside
- Some of Reddit’s Bitcoin and ETH holdings were acquired earlier this year in February.
- The platform previously cited the unstable regulatory environment for crypto as a factor in its shift away from the market.
Why This Matters
The crypto market’s inherent volatility often leads to uncertainty, causing some investors to sell early rather than “HODLing” through fluctuations. Reddit’s recent decision to offload its crypto holdings just before Bitcoin’s October rally underscores the challenges of market timing.
Discover more about Reddit’s past crypto ventures in this article:
Reddit Moons and Bricks Soar 50%: Are Community Tokens the Future?
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