Bitcoin traders are once again adopting a long-term holding strategy as the market experiences a surge in HODLers. This trend is reminiscent of what was observed from January to April 2021, when Bitcoin broke the $64k resistance level for the first time.
According to recent data, the number of Bitcoin wallets holding more than 1000 BTC, known as “whale wallets,” has been steadily increasing since mid-2021. These wallets, which are owned by long-term investors, currently hold a total of 7.88 million BTC, representing 42% of the total Bitcoin supply.
The market intelligence platform Santiment provided a detailed analysis of the rising trend of Bitcoin HODLers embracing a long-term holding strategy:
💰 There is a rising rate of #Bitcoin #hodlers as traders seem to have become increasingly content in keeping their bags unmoved for the long-term. We saw a similar trend from January, 2021 through April, 2021 when $BTC rose above $64k for the first time. https://t.co/xrwNhcqVLo pic.twitter.com/wYFBsx6Css
— Santiment (@santimentfeed) April 9, 2023
Notably, the trend towards long-term holding appears to be driven by the growing recognition of Bitcoin’s potential as a store of value and a hedge against inflation. This is especially evident in the wake of recent economic uncertainties, such as the ongoing pandemic and geopolitical tensions.
Moreover, traders seem to be content with holding their Bitcoin, even as the price fluctuates in the short term. This has resulted in a decrease in trading volumes and an increase in the average holding period of Bitcoin.
This shift in sentiment has not gone unnoticed by institutional investors, who have been pouring significant amounts of capital into Bitcoin and other cryptocurrencies in recent months. Furthermore, as Bitcoin continues to gain mainstream acceptance, more investors are expected to adopt a long-term holding strategy.
In conclusion, the recent trend of Bitcoin HODLing is a testament to the growing recognition of Bitcoin’s potential as a store of value and a hedge against inflation. As long-term investors continue to accumulate Bitcoin, the cryptocurrency is likely to maintain its upward trajectory in the long run.
