Recent research has revealed that several Bitcoin investors who bought at all-time highs are yet to sell.
It’s important to note that some of the Bitcoin (BTC) highs date back as far as 2017. This means that some BTC investments are almost four years old and counting.
According to Hodl Waves metric, the current biggest portion of the BTC supply is of coins that have not been moved for six to twelve months.
Analyzing Past BTC Buyers’ Decision
Around December 2020, Bitcoin surged past $20 000 to reach an all-time high of above $21 000. And while this price tag might be laughable now, given its $60k and counting, it was a big deal back then.
Why?
Because BTC had previously attempted making it past $ 20 000 back in 2017- a most significant hurdle even in the mindset of most traders. And failed.
“When this [rally to near $20,000] happened in 2017, there was a real lack of products for the new converts to experience, whereas today there are endless uses, protocols, services across farming, lending, standard trading, etc,” Soravis Srinawakoon, CEO and co-founder of cross-chain data oracle Band Protocol told CoinDesk.
And now, Hodl Waves, the tracker of the age distribution of unspent transaction outputs (UTXO), says that the number of coins held for more than a year has slightly decreased. Meaning that there is still very little selling from this group of determined investors.
BTC ‘Hodling’
It’s now clear, that despite solid gains and equally strong corrections witnessed in 2021. The new entrants or those who added to their positions in or after November 2020 are also reluctant to sell.
It may be a tempting sell at 3x gains, but last November’s buyers remain determined to “hodl.”
Conversely, the Hodl Waves study is showing that the supply controlled by six-to-12-month “hodlers” has increased, from 8.7% at the start of June to 21.4% as of Nov. 17.
This means that the current and most significant portion of the BTC in transit is by this six-to-12-month group. While the old investors are choosing to remain steadfast, with only modest selling, as according to the study
The data stresses the theory that few BTC owners intend to sell at current prices, even as these all-time circle highs.
However, Cointelegraph is reporting that the distribution of coins by long-term holders has now started just as it did in November last year— a classic characteristic of bull market peak phases.
Conclusion
Meanwhile, other trackers studying “older” BTC also hint that Bitcoin’s oldest hands will continue to sit tight.
Lead insights analyst, William Clemente, noted that dormancy flow remains low near BTC/USD all-time highs.
“Seeing dormancy flow currently so low means older coins remain relatively dormant,” he said in a Tweet on Wednesday.
“This Bitcoin bull market still has a way to go according to the metric.”
Source: William Clemente/Twitter