Recent data from Bitcoin Magazine Pro highlights a compelling trend: nearly 75% of all circulating Bitcoin has remained dormant for over six months, signaling robust HODLing behavior. This suggests a growing conviction among holders in Bitcoin’s long-term value, despite ongoing market fluctuations.
The ”HODL Waves” chart, which tracks the age of Bitcoins based on their last transaction, illustrates that coins held for six months or longer now dominate the market. This indicates that long-term investors are holding onto their Bitcoin in anticipation of future price increases.
This strong HODLing trend is crucial as it reduces the supply of Bitcoin available for trading, which could enhance price stability or even drive appreciation as demand grows. It also underscores the divergence between short-term traders and long-term holders—often regarded as ‘smart money’—who tend to maintain their positions through market volatility.
For new Bitcoin investors, this trend highlights the advantages of adopting a long-term strategy. Consistently buying and holding Bitcoin, rather than attempting to time the market, mirrors the approach of those who have historically realized the largest gains from holding Bitcoin.
Featured image from: hackquest.com