Long-term Bitcoin holders ‘HODL’ over 75% of all BTC indicating strong support, data shows
At a moment when Bitcoin (BTC) is trying to regain the key psychological level of $20,000 and the sea remains calm in the cryptocurrency market, long-term holders of the flagship digital asset are still holding on to it.
Specifically, long-term owners are persistent in their “hodling” behavior and currently own over 75% of all Bitcoin in existence, the highest percentage seen in seven years – since October 2015, as observed by martuun, an analyst at the cryptoanalysis platform CryptoQuant on 25 October.
Long-term hodler’s experience
As the analyst explained, “long-term owners are experienced market participants who have seen different phases of the market,” adding that:
“They have a lower spending behavior statistically, and thus these are hodlers of last resort, giving Bitcoin strong support.”
One of these long-term “hodlers” is Cathie Wood, managing director of investment management firm Ark Invest, who said in a recent Peter McCormack’s “What Bitcoin Did” podcast on October 21 that she had bought $100,000 worth of Bitcoin when it was trading at around $250 and that she has not sold it to date.
Considering Bitcoin’s price movements recently, this means that she bought her Bitcoin holdings sometime in 2015. Considering the price at press time, this suggests that her current profit on that investment would be a little more than $7.7 million.
A new phase for Bitcoin?
Meanwhile, martuun noted that this means that “coins are shifting from younger, less experienced market participants to long-term owners,” and concluded that “this process will take time, but once completed, Bitcoin may begin a new phase.”
Meanwhile, cryptanalysts Plan B and Josh Rager have both suggested that Bitcoin can expect a massive pump after its next halving event, which is set to take place in May 2024, when the price of each block created will be halved to 3,125 BTC.
At the same time, interest in Bitcoin and other crypto assets, such as Ethereum (ETH) and non-fungible tokens (NFT), is increasing among the super-rich investors, especially in the crypto hubs of Hong Kong and Singapore.
Another bullish signal for Bitcoin is the fact that it has managed to outperform stocks and most major fiat currencies in the third quarter of 2022, except for the US Dollar Index, as Finbold reported.
Bitcoin price analysis
As it stands, the first cryptocurrency is trading at $19,280, representing a 0.44% decline on the day, as well as 1.22% over the past seven days, although the monthly chart shows a 1.25% gain.
The market capitalization of the still-largest decentralized finance (DeFi) asset by this indicator is currently $369.87 billion, as of CoinMarketCap data retrieved by Finbold on October 25.
Disclaimer: The content of this page should not be considered investment advice. Investment is speculative. When you invest, your capital is at risk.
