The number of Bitcoin (BTC) accounts holding coins for at least one year is heading to all-time highs recorded in 2016 as the HODLing spirit intensifies. According to data from Glassnode, an on-chain data aggregator, nearly 60% of the total BTC in circulation has been held for at least a year despite the price appreciating massively since the 2018 crypto winter.
Notwithstanding, the economic pressure brought on by the COVID-19 global pandemic also has not deterred users to give up their BTC yet.
Nearly 60% of total Bitcoin dormant for at least a year
At the time of writing, the “HODL Waves” chart shows that about 58.64% of the total circulating supply of BTC has not moved in over 1 year.
The HODL Wave chart shows different dormancy of BTC accounting for how long coins have not moved for a certain period. The charts were developed by Unchained Capital in a move to keep check of the number of coins that remain dormant over a specific time band including daily, 1 week, 6 months, 1 year, 1-3 year bands, etc.
For example, a five-year band signals what percentage of BTC supply has remained dormant for the past half-decade, etc.
The 1 year to 3-year band represents the largest group of BTC holders for at least one year, with 30% of the total BTC held in this period. This represents the investors who have held their BTC from Jun 2017 (at the start of the massive bullish market) to Jun 2019.
‘Reluctance to sell’
A closer look into this particular group shows the investors who held their coins through the 2018 crypto winter are reluctant to sell. Despite the price of BTC growing through 2019, reaching a peak point of $13,800 in Jun last year, the HODLers seem ready to await further profits.
According to Dhruv Bansal, co-founder and CSO at Unchained Capital, the HODL levels rising just confirms a bullish narrative for BTC’s price. He further said,
“[Investors] who bought bitcoin on the way down from $6,000 to $3,000 in 2018 are still holding it despite the tremendous gains since then and the recent economic turbulence.”
The spike in the number of HODLers gives a bullish signal on the price of BTC as seen in previous bullish markets. The 2016 HODLing (1-year) spike led to a 48x increase in the successive year sending BTC to all-time highs. Can history repeat itself?