10 million bitcoins have not moved in more than a year
“HODLing” seems to be the dominant trend: the number of bitcoins that have not moved is the highest since 2017.
The crypto ecosystem, in relation to trade, is fundamentally divided into two groups: those who trade daily, looking for the best prices to sell and the lowest to buy and those who prefer to do HODling, a word that comes from the English hold ( conserve) but later became hodl as an acronym for “hold on for dear life”, which means “conserve as if it were life in it”.
Well, conserving has been the trend of recent months, according to Coindesk, which reports that around 10.7 million bitcoins have not moved in more than 12 months. To do this, it uses Digital Assets Data, a fintech company that builds cryptographic data feeds.
He emphasizes that considering that the total number of bitcoins in circulation is 18.14 million, this also means that almost 60 percent of the currencies remained inactive and only 40 percent participated in the action of the price seen in 2019.
That means there are more hodlers than active traders. That is, people prefer to save the currency by waiting for even better prices. According to the publication, the percentage of bitcoins that remained inactive for more than a year is at its highest level since the beginning of 2017.
Bitcoins have not moved hoping for a better opportunity
Bitcoin had a great move last year. It started in the range of USD $ 3,000, in the middle of the year it rose almost to USD $ 14,000 and closed 2019 at just over USD $ 7,000. However, as we saw, this variation in values did not mobilize more than half of the bitcoiners.
Coindesk points out that these saved bitcoins are probably due to the fact that many investors “expect a significant price increase after the reduction of the mining reward, which is expected in May. The process, which is repeated every four years, reduces block rewards by half to keep inflation under control. ”
He adds that, however, if the market does not meet high expectations, some sales could be seen this first half.
In addition, it highlights that many are probably keeping their bitcoins because they bought them at prices higher than the current ones. Just remember that in December 2017 Bitcoin reached almost USD 20,000 and many acquired the currency in that period.
“Many investors are still potentially underwater with Bitcoin by buying it at higher prices in 2017 and 2018,” said Kevin Kaltenbacher of Digital Assets Data.
Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.