Bitcoin Hodlers Remain Committed
Bitcoin hodlers who purchased the cryptocurrency in late 2020 are holding onto their coins without selling, according to data from the HODL Waves metric. This indicates a strong commitment to long-term holding despite the recent bull run that has pushed Bitcoin prices to new highs. The positive momentum in Bitcoin’s price has been attributed to the anticipation of the first U.S.-listed spot Bitcoin exchange-traded funds (ETFs).
Long-Term Holders Accumulate Bitcoin
The HODL Waves metric reveals an increase in a specific age band of Bitcoin holders over the past year. Coins unmoved for two to three years have significantly expanded their presence within the overall supply, indicating that individuals who bought Bitcoin between December 2020 and December 2021 are committed to holding their investments.
The Realized Cap HODL Waves also show a significant gain in the percentage of total realized cap coming from two to three-year-old coins.
Short-Term Holders Sell Off
In contrast to long-term holders, short-term holders or speculators have increased profit-taking activities. The surge in Bitcoin prices prompted a sell-off response from these holders, resulting in the liquidation of billions of dollars worth of BTC within days. However, this sell-off had a limited impact on spot markets where long-term holders already held a greater portion of the supply.
Hot Take: Bitcoin Hodlers Stay Strong Amidst Bull Run
Despite the recent surge in Bitcoin prices, long-term holders continue to accumulate and hold onto their coins, demonstrating their commitment and belief in the cryptocurrency’s future. This resilience among hodlers is contributing to the positive performance of Bitcoin. On the other hand, short-term holders have taken advantage of price increases to sell off their holdings, resulting in a temporary dip in prices. However, the overall impact on the market has been limited due to the strong presence of long-term holders. As Bitcoin remains an attractive investment, hodlers are likely to remain steadfast in their commitment to holding onto their assets.
By
By
By
By