Hold Or Hoard: Data Shows Staggering Amount Of Bitcoin Supply Hasn’t Moved in a Number of Years
The next figure, at three years dormant, reaches a sudden 31%. This information suggests that over a quarter of the BTC distribution has been sitting since September 2017, overlooking the summit, the whole bear market, and more.
Whatever the reasons may be, nearly two complete thirds of the supply haven’t moved in a year or more, while another nearly a third hasn’t moved in three years.
Not selling Bitcoin at $20,000 or anytime over the past few years suggests that the holders of those coins are extremely committed to the cryptocurrency long-term, or the coins are dropped, locked away, or forgotten on the blockchain once and for all.
Anyone holding Bitcoin for just about any point of its life, besides a short-lived stint in 2019, and a month or two in 2017, would have substantial ROI to show for it.
Bitcoin is the whole reason that the term”HODL” was coined, no pun intended. The term”hold on for dear life” might have been taken too much too heart, with more than half of the complete BTC supply locked away dormant in a pocket for a year or more.
Published at Wed, 30 Sep 2020 15:00:53 +0000
Bitcoin is a dealer’s asset, experiencing wild and volatile volatility, rising and falling 80 percent or more in a year or less. But it’s also a long-term investor’s dream, or at least it always was.
In the early days of cryptocurrencies, mining for BTC was the only means to obtain it. A number of these early miners might not have known what they had unlocked in possible, and lost their private keys, passed away, or more. Even Satoshi himself (or herself) as said to possess 1 million BTC of the total 21 million and has since vanished without a trace and is presumed deceased.
Are these dedicated long-term holders, hoarders, or is something else going on? We’re looking at all the possible situations about the ever-increasing sleeping supply of BTC and what each could indicate.
What’s also interesting, is the fact that Bitcoin also just set an all-time high on its 180-day moving average for speech activity, which shows the other side of this coin. That data, suggests that the remaining 39% of BTC that is circulating freely, is doing so at the maximum rate it has ever.
44% of the complete supply was held in pockets since September 2018 or earlier, meaning they held through the worst of the bear market and did not sell at the bottom, nor did they sell on Black Thursday or some time in between.
Or perhaps they’re simply preparing for a number of the future projections that the asset is called to reach, potentially as high as $400,000 per BTC or more. Whatever the motivation, more than 63 percent of the BTC distribution has been dormant for over a year.
It’s the best-performing financial asset of all time, and even though it can be a rollercoaster ride along the way, the yields have proven worth the strain. To facilitate investors first undergoing Bitcoin’s volatile volatility, a term was coined”hold on for dear life,” or”HODL.”
Instead of try to sell high and buy low, then watching Bitcoin bounce and leave new traders in the dust, old-timers advocated simply holding strong. And crypto investors are listening.
Some could have been bought and dropped during the Silk Road times when users were purchasing BTC for drugs and paid no attention to how to keep the cryptocurrency long term.