Bitcoin HODLed Hits 21-Month High – What It Could Mean for Investors
How long would you be willing to HODL Bitcoin [BTC] if you have bought or already own some? Bitcoin has historically proven that long-term HODLing guarantees a certain degree of success.
According to research firm Glassnode, the number of Bitcoin lost or HODLed for the past 21 months currently stands at 7.45 million Bitcoin.
This means that approximately 38% of Bitcoin’s current circulating supply has not been moved in nearly two years.
📈 #Bitcoin $BTC The amount of HODLed or lost coins just hit a 21-month high of 7,456,552,392 BTC
Previous 21-month high of 7,456,375,793 BTC was observed on August 28, 2022
See calculation: pic.twitter.com/AE7OOLf3Tj
— glassnode alerts (@glassnodealerts) 1 September 2022
Unfortunately, anyone who bought Bitcoin 21 months ago would only be in profit by a small margin at today’s price level.
This is because Bitcoin was trading in the $17,000 range 21 months ago, compared to its press time price of $19,726. However, these HODLers have contributed greatly to Bitcoin’s current level.
The 7.45 million is worth approximately $230 billion at today’s market value. This means Bitcoin has a hard floor of about $12,000 assuming the same hodlers don’t sell if everyone else sells.
One way of looking at HODL duration is that those who bought near the current level choose to hold for the long term.
Understand the HODL mentality
If we consider Bitcoin’s 70.8% move from its all-time high (ATH), then buyers have an incentive to HODL in anticipation of future gains.
The fact that 38% of HODLed BTC has not been moved further underscores this sentiment as the price is currently near 21-month highs as well.
Bitcoin has historically tested and surpassed its previous highs. The same is expected for the next big bull run.
As a result, many traders choose to HODL after buying, especially as the discount grows larger.
Bitcoin’s realized HODL (RHODL) ratio also confirms that many traders prefer to HODL the king coin at the current price range.
The ratio evaluates Bitcoin’s 1-week and 1-year supply bands. A high value indicates that new HODLers control most of the supply. On the other hand, a low ratio confirms that older HODLers control most of the supply.
Bitcoin’s RHODL ratio has been at its lowest level in the past two years. Long-term HODLers thus control most of BTC’s supply, and this is a healthy sign for the macro outlook.
