HODLing: On-Chain Data Reveals All-Time High of Bitcoin Held for Over a Year
Bitcoin investors who firmly believe in the long-term potential of the cryptocurrency commonly adopt the strategy of HODLing, or “holding on for dear life.” Recent on-chain data indicates that the number of Bitcoin held by investors for more than one year has reached a new all-time high.
On-chain analytics firm Glassnode’s data reveals that approximately 13.4 million BTC, representing a net increase in the group, have been dormant on the blockchain for at least one year. This reflects the growing number of coins that have matured into this group recently, highlighting a prevailing HODLing mentality among investors.
It is important to note that the increase in the supply of Bitcoin held for more than a year does not necessarily mean that these investors are actively purchasing at the moment. Rather, it signifies that they made the decision to acquire Bitcoin a year ago and have held onto their coins since then, allowing them to age into this category. The recent upward trend in this metric indicates that experienced investors have maintained their holdings despite the price volatility.
The provided Glassnode chart illustrates that the supply of Bitcoin held for over a year has been steadily increasing since the late 2021 bull run. This suggests that the market has primarily embraced HODLing during this period. The chart also includes another metric known as “net position change,” which measures the net amount of Bitcoin entering or exiting the supply held for over a year.
The behavior of these long-term investors has had notable repercussions on the market. For instance, when these experienced investors moved their coins in April of this year, it likely contributed to the temporary end of the rally. However, since then, HODLing behavior has resumed, indicating that investors continue to retain their coins despite fluctuations in price.
This recent streak of accumulation has resulted in a new all-time high supply of 13.4 million Bitcoin held for over a year. This significant accumulation suggests that investors have immense confidence in Bitcoin’s long-term potential and are willing to endure short-term market fluctuations.
As of the time of writing, Bitcoin is trading around $30,300, reflecting a 1% increase over the past week. The sideways consolidation in Bitcoin’s price indicates that investors are holding onto their coins rather than actively trading.
In summary👉, the increase in the supply of Bitcoin held for over a year to a new all-time high is indicative of investors’ strong HODLing mentality. Despite the volatility in price, these long-term investors continue to retain their coins, demonstrating their unwavering confidence in Bitcoin’s future potential. The prevalence of HODLing behavior in the market has contributed to the overall stability of Bitcoin, reinforcing the narrative of Bitcoin as a reliable store of value.
