24 Jun

Bitcoin experiences a Hodling wave

The data is beginning to surprise, indicating that investors are holding on to Bitcoin (BTC), intensifying Hodling’s spirit. Yes, almost 60% of Bitcoin’s offering has been dormant for at least a year.

We all knew that Bitcoin’s Halving was going to cause major changes in cryptomonics. The widespread discourse was that we could see the appreciation of cryptomoney increase dramatically, however, this has not happened.

Instead, Bitcoin’s price has been wobbling. However, it seems that a line has been drawn between long-term investors and those investing in BTC for a quick fix.

JPMorgan changes its attitude towards Bitcoin

Bitcoin HODL!
According to the data provided by Glassnode, 60.63% of the Bitcoin offer in circulation has not moved in one year. This means that, the investors who bought in 2018 have been reluctant to take their profits and give up their Bitcoin hodl.

In other words, most of the BTCs available on the market are in the hands of investors with a ‚hodling‘ investment mentality.

You’re probably wondering: What does this mean? Well, to put it in context, the last time so many Bitcoins stood still was in 2016, a phase that was followed by the bullfight in late 2017.

In the graph below we can see movement patterns of the Bitcoin supply known as „Hodl Wave“ where we can see that 60% Bitcoin is at the most advantageous point in its current „wave“ for long term investors.

Price of Bitcoin becomes strong at US$ 9,000

An imminent increase in the price of BTC?
This coincides with data offered by Unchained Capital, pioneer of the „HODL Waves“ analysis, when in March they pointed out that those who bought BTC during the 2018 collapse at $3,100 continue to hold their investment.

Therefore, it seems that investors are reluctant to sell their Hodlings even though they have certainly made large profits.

Dhruv Bansal, co-founder of Unchained Capital, pointed out that the rising HODL levels only confirm a bullish narrative for the BTC price.

He explained that „if you believe that Bitcoin’s price history is repeating itself or at least rhyming, then this may be a bullish signal, the market is consolidating in strong hands as macro trends highlight Bitcoin’s value proposition.

Could this increase in the Bitcoin hodling be a bullish signal? We want your opinion!