Data from Glassnode shows that investors are more likely to hang onto their bitcoin (BTC) for prolonged periods of time, a practice known in the crypto community as “HODLing.” A record-high 68% of bitcoin is being kept for at least a year, while 55% and 40% of bitcoin are held for two and three years, respectively.
Many experts see this increase in HODLing as a positive indication since it shows that investors are choosing to hang onto their investments rather than sell them. The stock market, in contrast, has undergone a long-term transition where investors now hold assets for noticeably shorter durations than in the past.
According to Sean Farrell, Head of Digital Assets Research at FundStrat, long-term holding has become more and more popular over time. The exception is when the market is irrational and purchasers are ready to acquire older coins from investors who bought during drops.
The pattern is optimistic inasmuch as it signals greater prices are forthcoming in this cycle, and any reluctance among present HODLers to sell might result in a mini-supply crunch, according to Farrell. He did issue a warning, however, that looking at indicators for long-term holding supply could not always result in good indications for short-term prices.
Glassnode’s statistics also showed a new all-time high in the Long-Term-Holder Supply, which comprises coins kept for more than 155 days, in addition to the increase in long-term holding. According to the Glassnode analysis, this statistic has reached 14.46 million bitcoin, indicating that coins bought right away following the FTX disaster have developed into long-term holders.
The cryptocurrency community is feeling good since HODLing is becoming more and more common among bitcoin investors. Market watchers perceive this tendency as a precursor to higher prices in the future since present HODLers may be reluctant to sell, which might result in a supply crunch.
The significance of attentively observing market dynamics and investor behavior is shown by the long-term holder supply’s continuous ascent to new heights. It is important to take into account a variety of variables when evaluating short-term price signals and making investment choices, even if long-term holding shows a good future for bitcoin prices.
The increasing percentage of bitcoin that investors are holding for longer periods of time demonstrates their growing conviction and trust in the long-term potential of the most popular cryptocurrency in the world.