Bitcoin (BTC) HODLing has never been so popular

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Investors are hanging onto their bitcoin (BTC) longer than ever HODLing in industry parlance according to data from Glassnode.

The proportion of BTC held for at least a year hit a record high of 68%, according to data from Glassnode, while 55% of bitcoins have been held for at least two years and 40% for three years.

Many analysts consider it bullish when BTC sits idle on the grounds that investors are choosing to hold rather than sell. The prevalence of buy-and-hold in crypto contrasts with the long-term evolution of US equities, a market where investors now hold assets for much shorter periods of time than before.

Sean Farrell, head of digital asset research at FundStrat, said being a long-term holder has tended to become more popular over time. The exception is when markets get foamy and investors who bought dips sell their old coins to greedy buyers.

The trend is bullish in that it means higher prices are ahead in this cycle and any reluctance to sell current HODLers could lead to a mini supply squeeze, Farrell said.

He added that looking at supply metrics from long-term holders isn’t necessarily helpful for short-term price signals.

The long-term supply, which Glassnode considers coins held for more than 155 days, also saw a new all-time high of 14.46 million bitcoins. This reflects coins acquired immediately after the FTX failure that achieved long-term holder status, according to the report.

Glassnodes’ liveliness measure, which compares the relative balance between HODLing and spending behavior, also shows that investors are hanging on. It fell to the lowest level since December 2020.

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