Number of hodlers increases as “veterans” decrease spending on bitcoin

Charlie Taylor

An on-chain analysis that investigated consumer habits revealed that more bitcoins are stalling and long-term investors are not giving up their assets. The latest report from analytics provider Glassnode revealed more details about users' spending habits Bitcoin, known as bitcoiners, which may suggest that general market sentiment is still bullish. The company also noted that the continued exits of bitcoin from exchanges demonstrate that investor build-up is not easing.

HODL waves are getting bigger

Smaller portfolios are increasing as the accumulation of satoshis becomes popular for new entrants to the Bitcoin markets. Those who bought before or during the previous bull market in 2017 will have realized some profits, but it is now starting to slow down.

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The Glassnode report stated that many BTCs are on their way to becoming classified as long term holder currencies (long term holder or LTH) with more than 155 days. These are the first signs of a new generation of hodlers, forged in the current 2020/21 bull market. By analyzing HODL waves, which present a macro view of the age distribution of coins and can offer insights into spending behavior, he found that the volume of bitcoins with a shelf life between 1 and 6 months increased by more than 9.5% of the offer. There was a noticeable acceleration from three months ago, just when the asset started to record new historical highs.hodl waves, graphicBoth the number of currencies with 1 to 3 months without movement and the coins that are stopped for 3 to 6 months have increased significantly in recent weeks. Source: Glassnode. The study added that, once a currency ages or is held for 5 or 6 months, it is increasingly likely to remain inactive and reclassified as a long-term holder (LTH). “The message to take to home here is that investors and traders continued to buy BTC, across this bull market. ”The survey found that as currencies mature and age, they are more likely to be held by stronger hands, which are not shaken by price volatility. The analyst Willy Woo reiterated the findings, adding the “Elon Musk effect”, which accelerated the trend towards hodl:

"The first investors like to profit by selling their coins (which carry more dormancy) at each high, so this guy (Elon Musk) arrives and decides to buy, and now they 'hodlam' like the rest of us."

Elon Musk effect, graphicMoving average of the “dormancy” of bitcoin coins and, in blue, the day of the announcement of the purchase of Tesla's BTC. Source: Willy Woo and Glassnode.According to data from Coingolive, bitcoin is trading around US $ 58,820 abroad and R $ 338,350 in Brazil with a 13% increase in the last 7 days.See also: Paypal will launch today service for businesses to accept bitcoin, cryptocurrency soar

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