In addition, we have also all ICO's where someone puts 10,000,000 flapdrol-coins on the market and a friend buys one Flapdrol for 10 euros and, hoppa, Flapdrol is worth 100 million on CMC.
And that's the reason who HODL is such bad strategy. If they would be liquid, price would correct quicker and the friend just bought a very expensive Flapdrol.
HODL is not generally a bad strategy neither for an investor nor an asset, it reduces volatility to some point. The problem starts when an assets only use case is HODL.
Let's take a look at houses, most are HODL'ed for a relatively long time, therefore a bubble can build up (-2008), however for most houses there is also another use case (shelter) and that's why I wouldn't say that buying a house is a bad idea. Buying a house no one want's to live in and you buy because you think that you can resell it in a few years for double the price you invested however IMO is a bad idea.