- 75% of Bitcoin in circulation hasn't moved in at least six months, up from 45% last week, indicating strong HODLing behavior.
- HODL Waves chart suggests long-term investors are holding Bitcoin, potentially stabilizing prices and reducing available supply for trading.
- Over 80% of short-term Bitcoin holders (less than 155 days) are currently at a loss, raising concerns about potential panic selling similar to past market downturns.
About 75% of Bitcoin in circulation hasn't been moved for at least six months, according to HODL Waves chart. This is an increase from last week when only around 45% of circulating Bitcoin had stayed dormant for that long.
The "HODL Waves" chart shows how long Bitcoins have been held by their owners since they last moved. It helps us see how different groups of holders react to the market. When older coins (those held for 6 months or more) dominate, it suggests that long-term investors are holding onto their Bitcoin, likely expecting future price increases.
This HODLing trend is important because it means fewer Bitcoins are available for trading, which could make the price more stable or even cause it to rise as demand increases. The data also shows a difference between short-term traders and long-term investors. The long-term investors, often seen as 'smart money,' are likely to keep holding their Bitcoins during market ups and downs.
Meanwhile, onchain analyst James Check noted in a post that over 80% of short-term Bitcoin holders are at a loss, having bought at prices higher than the current market value.
Additionally, he warned that if short-term holders—those who’ve had BTC for less than 155 days—panic sell like they did in past years, it could lead to more problems. This situation is similar to 2018, 2019, and mid-2021, when many investors were at risk of panicking and causing a downward trend.
Edited by Harshajit Sarmah
