“HODL” a famous term among redditors and Twitteratis means to HOLD on to something through thick and thin. And it seems that has been happening for Bitcoin and those who actually believe in the cryptocurrency have held on to it for years now. Reports suggest that 37% of Bitcoin supply hasn’t moved since the high of 2017, while 55% hasn’t moved since 2018’s dip. This report was published by Glassnode, an onchain data and research company.
As the price of Bitcoin touched the $61k price point, heavy profiteering started and it dropped back to $54k and has recovered a bit since then. But the question is, is this the work of all the shorty term holders. Probably yes, as reportedly half of the entire supply of Bitcoin is already being held for years now. These HODLers are now sitting with 2x-10x gains. But are continuing to hold even after the highly volatile nature of BTC. Owning to the fact that 37% of the Bitcoin hasn’t moved since the last high of 2017, means these guys didn’t even sell when BTC lost 90% of its value.
Short term sellers
Glassnodde’s research also shows how there are a lot of short term sellers that are all trying to make quick bucks. Their research reported showed a 1 million BTC volume every day. And according to them, it’s the same Bitcoins being transferred over the network again and again. Obviously, there could be long-term holders selling now or new investors buying in but mostly its the same coins. Glassnode also reported that anyone holding less than 155 days can be termed as a short term holder. At the same time, more than that is definitely long term.
This study shows that at least 55% of the market won’t panic sell their coins on a downtrend. They are HODLers and will continue to HODL. Considering the high volatility of the cryptocurreny this number is important for timely corrective movement and again bullish push of Bitcoin. At the same time, these are the ones that won’t sell their coins when the market booms and make all-time highs. They are the ones keeping the market stable as much as possible. Because other than that its a high profiteering game with people coming in for short term gains.
Just recently we saw that Bitcoin made an all-time high and reached $61k. But after that, the pace at which people started selling their holdings to book their profits pushed the price back by 10%. All could have gone to dust if the long term HODLers thought of selling and therefore they are important for the market.
What are your thoughts on long term holders strong on 55% of Bitcoin supply? And if you are an investor which one are you long or short? Let us know in the comments below. Also, if you found our content informative do like it and share it with your friends.