The number of Bitcoin HODLers is the highest as 10M Bitcoins have not moved in more than a year. This is according to research that was done by Digital Assets Data, which is a Fintech company focused on crypto data feeds.
That is a big number considering that the total number of Bitcoins in circulation is 14.14 million. It means that only 40% of Bitcoin have been in circulation in 2018 and 2019 with the rest lying dormant in wallets. 10 million marks the highest number since early 2017.
It means that the HODLing community is on the rise as many people invest in Bitcoin for speculative purposes and the storage of value.
Last year alone, Bitcoin underwent a roller-coaster in its value ranging from $3693 to $13, 879 up to June only to drop up to $7179 by mid-December. 2020, however, started on a high note for the currency.
Despite the drastic changes in price, a large number of Bitcoins remained intact as investors were holding them with the hope that prices will still rise. Most investors are speculative of price rise due to the high mining reward expected in May. Every four years, the block rewards are normally reduced in half as a strategy to tame inflation. The next halving will be done in May and there are high chances that the prices will rise.
Investors are holding Bitcoins based on the expectations they have set and if the expectations are not met there is a high likelihood that the Bitcoins will be sold.
Another reason that Bitcoin Hodlers may be holding to their currency is that they bought the currency at a high rate and are scared to sell their Bitcoins at a loss. They are Hodling with the hope that the value will rise for them to recover their investment and still get a profit. This is according to Kevin Kaltenbacher of Digital Assets Data.
According to Kevin, most investors bought Bitcoins around 2017 and 2018 when prices were high. The last time Bitcoin got a high of $13, 879 was around December 2017 to February 2018 and chances are high many investors bought Bitcoins around that time.
Most Bitcoin investors are long term players who are hopeful of long-term growth prospects of the market. The more the growth of the value of Bitcoin, the more the likely number of Hodlers.
Image by Peggy und Marco Lachmann-Anke from Pixabay
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