A seminal milestone was reached this week in the world of Bitcoin, as the amount of coins held by long-term investors set a new all-time high. This key metric hit levels not seen since Bitcoin’s early years, indicating robust confidence in the cryptocurrency’s future value.
Known as “HODLers” in crypto parlance, these steadfast believers in Bitcoin’s promise have been accumulating coins and refusing to sell for prolonged periods of even in the face of extreme volatility. By holding on to their investments, these investors have shown remarkable commitment to Bitcoin’s ideological underpinnings and revolutionary technology.
This increasing supply scarcity suggests the market may be setting up for a bull run in prices. With less Bitcoin available for trading, continued growth in demand could start outpacing supply. Economic principles indicate that decreased supply and increased demand lead to higher prices.
The new record for long-term holder supply comes at a symbolic moment – as Bitcoin struggles to definitively break out above its 2017 high. The developing supply squeeze from HODLers paves the way for a renewed push past all-time price peaks.
Regardless of prices, HODLer’s behavior validates Bitcoin’s appeal as a long-term store of value. And this week, their unflinching belief in the cryptocurrency reached unprecedented levels on Bitcoin’s immutable blockchain. Both fundamentals and metrics align to underscore Bitcoin’s prospects in these early innings of its technological evolution. As with each passing cycle, a new wave of enduring HODLers further cement Bitcoin’s ascent.
