While Bitcoin has been on a rollercoaster ride in 2021, one thing that has been constant is patience. While many investors are buying and selling their Bitcoin for small gains or even losses, long-term Bitcoin hodlers are not budging. They are still holding despite the new $69k high and have hardly booked any profits. On-chain metric on glass node shows that coins spent by long-term holders have hit record lows.
Diamond hands
It is being seen that long-term hodlers are patient with their coins as the CDD metric remains dormant. When there is a movement in the coin, the metric shows how long the coin has not moved before that. For example, if a 3-year old coin is sold or transferred today, then it will show that it’s been 3 years. And even though the price has surged to $69k this year, this metric hasn’t shown much movement.
All this shows that those who have been in the Bitcoin space for a while know that how important it is to hold long term. And even though many of these investors have enough coins to have a great future ahead, if they just book their profits, they are still holding. It is obvious, why would you want to sell something to $50k or $70k when you know it can be worth $500k in the next 5-10 years.
The data showed that after the price of BTC crossed $20k, there was some selling. But the majority of long-term investors stayed firm and kept holding. Even now, any selling that happens, it is being seen that the coins are relatively new. There are people who are selling their holdings now, and their entry was in the summer of 2021.
This is great
We should understand that long-term hodlers are very important for the sustenance of an asset’s growth. A bubble is formed when long-term hodlers take cues from short-term investors and start booking profits. This is what happened in 2017-18 as there was a major spike in selling from ling term investors, which resulted in a price collapse. But this has not been the case till now, and hence it is a very bullish metric for Bitcoin.
What are your thoughts as Long term Bitcoin hodlers don’t budge despite strong market movements? And do you think this makes the 2021 bull run different from 2017’s one? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: Bank of Russia will collect crypto transactions data.
