The number of long-term holders of Bitcoin has reached its highest level in the past year. According to analysis by Glassnode, this group of investors controls 75% of all bitcoins in circulation.
In short, such people do not care about short-term volatility and believe that Bitcoin only increases in value over time, mainly in response to the inflation of government-controlled currencies.
Also in 2013, the term “HODL” (with a typo) went viral on Bitcointalk. On that date, a drunk user named GameKyuubi complained about himself that he was a terrible trader and thus started using the long-term holding strategy.
“BTC is falling, why am I holding it? I’ll tell you why. It’s because I’m a terrible trader and I know I’m a terrible trader”noted the user in 2013 when Bitcoin plummeted from $1,163 to $382 in just a few days.
Nearly ten years after its installation, BTC appreciated by 7,592%which turns out to be a great strategy for those with patience.
The number of long-term Bitcoin holders hits the highest point of the year
According to Checkmate, an analyst at Glassnode, GameKyuubi is not alone in this strategy. In total, more than 3/4 of all bitcoins in circulation are held in wallets that have not moved their coins recently.
“New historical record for the offering [controlada] by Bitcoin Long Term Holders, now at 14.59 million BTC (75% of circulation).”
New all-time high for #Bitcoin Long term holder stock 🔵, now for 14.59 million $BTC (75% of the circulation).
A range of essential Long/Short-Term Holder tools are available for Advanced @glassnode members to follow HODLers vs Speculators in this dashboard 👇https://t.co/ZyvUI9zL12 pic.twitter.com/83sLGQbtT5
— _Checkɱate 🔑⚡🌋☢️🛢️ (@_Checkmatey_) August 7, 2023
According to the data, the change started in 2021, when short term holders dominated the market. Since then, long-term investors have taken control of the market. Even with the 80% increase in 2023, few seem interested in getting rid of their coins.
As a result, the trend is higher as the data shows that there is no selling pressure in the market and new buyers are not finding good opportunities. Supply and demand.
However, this can also affect Bitcoin’s liquidity. Bitcoin has shown low volumes in Brazil over the past four months, especially in July, according to data from MercadoCripto.
Finally, the hope that the US approves the first Bitcoin spot ETF may also be a reason why no one is interested in parting with their coins. After all, large institutional capital is expected to enter the market, driving up the price of BTC.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
