Bitcoin, the world’s largest cryptocurrency by market capitalization, has seen a dramatic rise in popularity and adoption since its inception in 2009. Over the years, the number of Bitcoin holders has increased exponentially, and today, more than 15 million Bitcoin are being held by long-term holders, also known as “HODLers.” This news comes as a result of a recent tweet from prominent Bitcoin analyst Jimmy Straten, which highlights the massive amount of Bitcoin that is being held by long-term investors.
— James V. Straten (@jimmyvs24) February 27, 2023
HODLers and their investor behavior
HODLing, a term coined in a forum post on Bitcointalk in 2013, refers to the act of holding onto Bitcoin for an extended period of time, typically in the belief that its value will increase over time. HODLers are known for their strong belief in the long-term viability of Bitcoin and their refusal to sell their holdings, even during periods of market volatility or downturns. Many HODLers view Bitcoin as a long-term store of value, similar to gold, and believe that its limited supply and decentralized nature make it an attractive investment.
The number of long-term Bitcoin holders has been steadily increasing since 2017. In fact, as of January 2022, over 15 million Bitcoin are being held by investors who have not moved their holdings in over a year. This represents approximately 80% of the total Bitcoin supply, which is currently capped at 21 million coins.
HODLing is gaining attention from investors
The trend of HODLing Bitcoin has become more prevalent in recent years, as institutional investors and corporations have started to invest in cryptocurrency. Companies such as Tesla, Square, and MicroStrategy have made significant investments in Bitcoin, with MicroStrategy alone holding over 100,000 Bitcoin, currently valued at over $5 billion.
The rise of HODLing has also led to the development of new financial products, such as Bitcoin futures and options, which allow investors to speculate on the future price of Bitcoin without actually owning the cryptocurrency. These financial products have made it easier for institutional investors to invest in Bitcoin, further fueling the trend of HODLing.
While HODLing Bitcoin can be a lucrative investment strategy, it is not without risks. The cryptocurrency market is notoriously volatile, and the value of Bitcoin can fluctuate rapidly, often without warning. Additionally, Bitcoin has been the target of numerous hacks and cyber attacks over the years, and investors who do not properly secure their holdings may be at risk of losing their funds.
Despite these risks, many investors continue to HODL Bitcoin, confident in its long-term potential. The massive amount of Bitcoin held by HODLers is a testament to the growing popularity of the cryptocurrency and its potential as a store of value. As more institutional investors and corporations enter the market, it is likely that the trend of HODLing Bitcoin will continue to grow, further cementing the cryptocurrency’s position as a viable investment option.