BTC holders adhering to the HODL strategy still do not sell their coins, despite the historical high of the bitcoin price, which indicates the further potential of the current bull market.
Bitcoin users with a preference for the long-term investment strategy (HODL) continue to keep their coins, despite the fact that the price of BTC reached another all-time high this week. At the time of preparation, bitcoin is trading at $ 63,026, showing a slight decrease of 1.5% over the past 24 hours.
“It is likely that the coins purchased by institutional investors in late 2020 and early 2021 are starting to mature,” says a report from analyst firm Glassnode.
“The HODLer Position Change is on an upward trend, and if these institutional buyers adhere to the HODL strategy, it is likely to continue to rise along that trajectory in the coming months.”
Glassnode Coin Years Destroyed (CYD) metrics track the number of days represented by each HODL “streak” over a 365-day period before that streak ends or is “destroyed”. Currently, CYD is trending upward at a level similar to the peak in the BTC price in 2013, but still well below the peak in 2017.
“The age of the Bitcoin network is increasing and the coins available have had more time to accumulate. With this in mind, if many HODL supporters were selling their coins, we would expect a relatively high CYD value. “
Macroeconomic factors can be the driving force for long-term ownership of BTC. Many investors see Bitcoin as a hedge against inflation and the continued depreciation of the dollar. Finding profitability can motivate more people to invest in BTC.
According to another Glassnode study published this month, a new generation of cryptocurrency users are following the HODL strategy and storing BTC after a purchase for one to six months. These users entered the industry during the recent Bitcoin rallies.