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The Number Of Bitcoin Holders Has Reached A 3-Year High - Binaryx

The Number Of Bitcoin Holders Has Reached A 3-Year High

Investors and miners are in no hurry to sell their Bitcoin holdings and adhere to the HODLing strategy. Do they believe so strongly in the digitalization of the economy, or do they foresee an extremely high breakthrough in Bitcoin in the hope of generating multi-million dollar profits?

Investors bet on HODLing

Glassnode regularly researches behavioral dynamics in the crypto market. According to the latest data, the majority of investors have taken the HODLing position, which provides for the purchase of cryptocurrency for a targeted long-term “freeze” on crypto-addresses until more favorable market conditions come.

Analysis of crypto-addresses showed that most of the coins have not been used in circulation since the moment of purchase for two or more years. Today, the number of Bitcoin holders has reached a 3-year high, which indicates the predominance of optimistic sentiment to cryptocurrency.

2018 was an example of how the long-term accumulation of Bitcoin has allowed an investor to generate multiple returns. As a result of the second halving, the price of Bitcoin rose to an extremely high price range of $20,000. It was during this period that Bitcoin holders stepped up and sold an impressive part of their savings. Investors may be looking forward to a repeat of this scenario in the hope that Bitcoin could surpass the 2018 record.

Investors were systematically preparing for the third Bitcoin halving, as evidenced by the growth of crypto asset purchases in 2019. According to Cryptowatch, over the past 12 months, more than 63% of new Bitcoin receipts did not move in the blockchain and remained in storage in crypto addresses.

Miners have reduced the sale of Bitcoins

According to Glassnode, a significant proportion of miners have also opted for the HODLing strategy. This looks paradoxical since the halving of the reward for new blocks in 2020 put miners in a forced need to sell Bitcoin reserves in May.

But apparently, not all miners succumbed to panic, as evidenced by statistics: today, more than 1.8 million mined Bitcoins continue to be stored on miners’ addresses. The trend towards the retention of cryptocurrency continues to persist, despite the current rise in the price of Bitcoin and the opportunity to profitably sell coins to cover mining costs.

Thus, the decline in the sale of Bitcoin may signal the preparation of the crypto market for the “big game” and a long-term bullish trend. A sharp increase in demand for Bitcoin due to a decrease in its turnover can also become an additional driver for the growth of its price.