More investors than ever before are holding bitcoin (BTC) for the long term – or in industry parlance, HODL.
According to Glassnode data, a record 68% of bitcoins have been held for at least one year, 55% have been held for at least two years, and 55% have been held for three years. The coin has reached 40%.
Many analysts are bullish on Bitcoin as investors choose to hold it for the long term. The spread of long-term holdings in crypto assets contrasts with the long-term shift in US stocks. In U.S. stocks, investors are holding assets for much shorter periods than they used to.
FundStrat’s head of digital asset research Sean Farrell said long-term holdings tend to gain more traction over time. The exception is when the market becomes active and investors who bought in a downturn sell long-held assets to buyers who are willing to buy.
“This trend is bullish insofar as it implies price gains in this cycle and could result in a small supply squeeze if current long-term holders hold off on selling,” said Farrell.
He added that long-term holder behavior is not always useful as a short-term price signal.
Glassnode Long-Term-Holder Supply (amount of bitcoin held for 155 days or longer) also reached a record high of 14.46 million bitcoins. “It reflects the maturity of the coins purchased in the immediate aftermath of the FTX bankruptcy into a long-term holding landscape,” Glassnode wrote in its report.
Glassnode’s Liveliness index, which compares the relative balance between long-term holdings (HODLing) and spending behavior, also shows investors’ long-term holdings, dropping to its lowest level since December 2020.
｜Translation: coindesk JAPAN
｜Editing: Takayuki Masuda
| Image: Glassnode
｜Original: Bitcoin HODLing Has Never Been More Popular