75% of Bitcoin Held for Six Months, Showing Strong Holding Pattern
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According to on-chain data, about 75% of all Bitcoin in circulation hasn’t been moved in the last six months or longer, as Bitcoin hodling behaviour continues to rise.
All About Bitcoin Hodling Trend.
Glassnode’s Hodl wave chart shows that three-fourths of the total Bitcoin supply has been inactive for six months. Many traders seem unwilling to sell their holdings, particularly in the wake of a bearish crypto market.
The chart examines when Bitcoin in wallets was last moved to give an overall picture of how long people hold onto their Bitcoin.
Bitcoin’s price experienced a drastic fall after reaching a new all-time high in mid-March. Despite the inflows from spot Bitcoin ETFs, the asset’s value dropped by about 32.75% from its highest point of $73,750, falling below $50,000 in the first week of August, with over $600 million in leveraged positions liquidated.
The panic selling in the crypto market was triggered by a wider crash in financial markets as traders worried about the possibility of a global recession and rising tensions in the Middle East. For instance, Japan’s Nikkei 225 Index slumped 12.4%, while the micro futures on the S&P 500 Index lost 3.3%.
While Bitcoin regained most of the gains a week after, many analysts antiicipate a sluggish return to its all-time high.
In an August 19 X post, analyst James Check pointed out that over 80% of Bitcoin Short Term Holders who bought Bitcoin recently are at a loss because they bought it at prices higher than its current value.
Right now, over 80% of #Bitcoin Short-Term Holders are underwater, meaning their coin was acquired at a price above the current spot price.
This is similar to 2018, 2019, and mid-2021 which signalled many investors were at risk of panicking, and precipitating a bearish trend. pic.twitter.com/8jM7PBqh5z
— _Checkmate 🟠🔑⚡☢️🛢️ (@_Checkmatey_) August 19, 2024
He warned that a further fall in Bitcoin price could result in panic selling as in previous years.
Will Bitcoin Turn the Tide Soon?
Many factors, including the upcoming November U.S. presidential election, influence Bitcoin’s price. While some analysts anticipate a bearish phase, others predict a completely different outcome, highlighting the uncertainty in the market.
Notably, the crypto market sentiment remains bearish as the Crypto Fear & Greed Index is at 28 score, which is currently in the fear zone. When investors are fearful, they usually sell their assets quickly to avoid losing more money. However, many analysts believe that the long-term potential of Bitcoin remains strong, with future market recoveries potentially bringing it back to previous highs or even beyond.
Recall that Robert Kiyosaki predicted Bitcoin price to reach $100k in September as he advocated for increased investment. Standard Chartered also sees the asset reaching $150,000 per coin by the end of the year.
