Bitcoin
is becoming more and more well-known and more popular every day. This is the leading factor in its appreciation.
According to Glassnode data, 60% of bitcoins have not moved for more than 1 year. The last time the proportion of investors who chose to hold their investments with
HODL
for so long for Bitcoin was in 2017, when bitcoin saw its historic peak.
Bitcoin rebounded after the decline in March 2020 with the Coronavirus process and approached the $ 10,000 level. However, it could not rise above this level and some pullback was observed with profit selling. Bitcoin, which has been reversing its direction upwards for the last few days, may be likely to test the $10,000 level once again. Bitcoin was not able to overcome this psychological level last time, but this time this data shared by Glassnode gives us the idea that investors’ bullish expectations for Bitcoin continue.
In this period when the Bitcoin supply decreases after the halving
, investors prefer to hold their bitcoins with HODL, which may cause the market to be further squeezed in terms of supply and in this case, the upward movement in bitcoin prices may strengthen. The data shared by Glassnode was previously seen at these levels in 2016 – 2017. After this period, when we remember that at the end of 2017, the Bitcoin value saw its historical peak levels of $ 20,000, we can also evaluate how important the potential of this upward movement is.
When the proportion of investors who have previously kept their bitcoins for more than 1 year exceeds 60%, we see that the value of bitcoin has increased from $ 1000 to $ 20,000 in about 1.5 years. Perhaps it would not be right to foresee such a high appreciation in front of us and it would be an excessive expectation. However, we can assess that long-term gains, which are difficult to achieve in any other b+ir investment instrument, can be achieved.
