Bitcoin HODL is at record highs as market activity hits lows

Bitcoin HODL is at record highs as market activity hits lows

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Bitcoin HODL is at record highs as market activity hits lows

www.coininsider.com

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Long-term Bitcoin holding hits an all-time high, with data revealing that the amount of the cryptocurrency that hasn’t moved for at least five years is higher than it has been before.

According to on-chain analytics firm Glassnode, the Bitcoin supply that has not been traded, sold, or moved for at least five years has hit a record high of just under 25%. This means around 4.78 million BTC of the 19.12 million BTC that has been mined and is now in supply has been off the market since 2017.

Bitcoin price

In the past two years, Bitcoin has managed to gain back over $5,000 USD since its lows seen in June. While it’s still looking at 66% off its record high, the current value also represents 10 times the price it held in 2017. The road has seen two bull rallies and significant price spikes and dips, but long-term traders seem to be increasing their holding time.

Chart: Coingecko

The last few months have seen their fair share of selling, with firms and institutions getting rid of their holdings during the bear run. From data collected coupled with market sentiment, this appears to be short-term market entrants and longer-term holders are not looking to sell their holdings.

Other data confirms this too, pointing out that Bitcoin activity is at a low point which traders not moving their tokens more and more. According to developer Tamas Blummer, Bitcoin’s activity tends to increase when holding decreases and the reverse. This means that when investors are accumulating and holding, the activity decreases:

“It is apparent that Liveliness (activity) increases (and HODL decreases) during time periods of Bitcoin price increases and investors accumulate to HODL during periods of range bound prices.”

According to Glassnode, the Bitcoin activity (Liveliness) is at the lowest the market has experienced in over a year and a half as investors and traders look to hold.

Source: Glassnode

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