Recent data shows that Bitcoin owners who bought the digital currency at around $20k last year are refusing to sell their stash around recent highs. They are even not looking to liquidate out of panic as the price plummeted earlier today and went below $57k. This shows that many still believe, including relatively newbies that the cryptocurrency has a chance to go much higher than current highest levels posted at around $69k.
According to data from HODL Waves metric, coins that moved didn’t move3 between 6-12 months prior to today now constitute a majority of the total supply of the cryptocurrency. This means that a considerable amount of Bitcoin, several hundred billion dollars at least hasn’t been touched during this time.
While Bitcoin’s supply usually sits around for a long time in many wallets, this is surprising, especially in a bull season to see this kind of longevity-based thinking from new buyers. It is totally surprising that people who started buying the digital currency around $20k still refuse to sell their crypto. This is even though big price fluctuations have occurred in the market ever since. First, BTC went as high as $64k back in April and then started to crash around May and reached $28.8k by July. Then, it started rising again in August and really took off in September and October, continuing a bit in November as well to post a new high of $69k in the process.
So, amid this wild see-saw of the digital currency market, those mid-stage buyers aren’t yet ready to sell their crypto stash. They held their nerve and believe that the market still has some distance to go. These new HODLers have increased their supply share from around 8.7% at the start of June to around 21.4% on November 17.
Based on the HODL Waves data, crypto being held in place for longer period of time has decreased very slightly, showing that some of the HODLers made some profits during the entirety of the bull run. Some profit-taking from their side might be justified but at the same time, there is not a lot of net change in it as well, thus showing that even they aren’t ready to cash out.
Other than these two groups of Bitcoin investors, some of the longest Bitcoin HODLers have continued to do so and haven’t moved their Bitcoin. According to one analyst, overall, older Bitcoins remain dormant and have continued to remain so despite the heavy price increases of this year.
Image Source: pixabay.com
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