Why Bitcoin HODLers Are Still Holding Strong

Published 05/29/2024, 10:30 PM
Updated 05/29/2024, 11:15 PM
© Reuters.  Why Bitcoin HODLers Are Still Holding Strong
BTC/USD
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  • Bitcoin Whales Are Selling, But the Biggest Believers Are Doubling Down.
  • Bitcoin’s technical indicators flash signs of volatility.
  • Decoding Bitcoin’s future: “HODLers” hold the key.

As Bitcoin prices climb, certain long-term holders cash in on recent gains, a pattern typical in bullish markets. However, data reveals a surprising trend: those who have held onto their Bitcoin for over three years are accumulating more, signaling confidence in the cryptocurrency’s future.

The fact that more than half of the entire Bitcoin supply has been dormant on-chain for more than a year indicates that long-term holders remain firmly convinced of its value. Given market fluctuations, this inactivity indicates that a sizable percentage of Bitcoin investors are confident in the asset’s long-term worth and prefer to hold rather than sell.

We observe a shift in holder behavior as Bitcoin’s price rebounds from the previous drop to $56,000. The cohorts of those holding Bitcoin for one and two years have stopped selling and are now in a holding phase rather than a distribution one.

With the price-challenging support levels, the technical picture of Bitcoin is currently in a c…

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