Bitcoin (BTC) has been marked by a notable trend: the phenomenon of “HODL’ing”, which refers to the long-term holding of the cryptocurrency.
Recent data from Glassnode reveals that over 70% of the circulating supply of Bitcoin has remained dormant for at least a year.
HODLing remains the preferential market dynamics amongst #Bitcoin investors with mature subsections of the supply remaining largely dormant.
🔴 Supply Last Active 1+ Yrs Ago: 70.1%
🟡 Supply Last Active 2+ Yrs Ago: 57.4%
🟢 Supply Last Active 3+ Yrs Ago: 41.6%
🔵 Supply Last… pic.twitter.com/WdFG7ChEuU
— glassnode (@glassnode) December 13, 2023
This preference for keeping Bitcoin unmoved is evident across broader segments of the supply: 57.4% of units have been idle for at least two years, while 41.6% and 31.4% have been idle for three and five years respectively.
This pattern reflects investors’ deep-rooted confidence in the leading cryptocurrency.
The fact that a large portion of Bitcoin’s supply has remained static for extended periods suggests strong, long-term conviction in its potential.
This phenomenon has been observed despite market ups and downs, highlighting the unwavering confidence of Bitcoin holders even during challenging market times.
The steady rise of dormant Bitcoin since 2021, with periodic fluctuations but generally in an upward trend, highlights investors’ preference for holding onto their assets rather than selling or moving them in the short term.
This behavior of Bitcoin has continued despite recent price movements
Although Bitcoin hit a new yearly high, it saw an abrupt correction in early December, now holding in a range between $40,500 and $42,000.
This data highlights the narrative of a community of Bitcoin investors with a long-term mindset, not easily swayed by short-term market volatility.
However, despite this strong support, concerns have been raised about reduced liquidity due to the significant amount of dormant Bitcoin, which could hinder its functionality as a medium of exchange.
Additionally, regulatory proposals, such as the one introduced by US Senator Elizabeth Warren to control the use of cryptocurrencies in illicit activities, could create uncertainty in the future.
Despite these challenges, the HODL’ing trend suggests lasting confidence in Bitcoin’s long-term potential among investors.