The fresh Bitcoin hodlers are refusing to sell at $40K
Investors who bought BTC during the latest bull-market, continue to “HODL” BTC at $40,000, even if they bought it at lower levels earlier in 2021.
In week 24, 2021’s newsletter dubbed The Week On-Chain on June 14, on-chain monitoring resource Glassnode revealed that buyers from the first months of this year’s bull market are refusing to cash out despite the price surge.
Glassnode analysis suggests that this is clear by looking at so-called HODL Waves, an indicator that shows what proportion of the Bitcoin supply last moved. These are based on Bitcoin’s realized cap, a measure of the market cap which takes into account the price at which each coin last traded.
HODL waves confirm that in part thanks to low volatility, the Bitcoin supply is aging, and few investors are selling.
As such, even coins now in profit by a significant percentage, if not double their buy-in price, remain dormant.
“Some long-term holders (LTHs) have and will take profits on their coins,” the newsletter acknowledged.
“What is common in all Bitcoin cycles is that LTHs spend a larger majority of their coins into the strength of bull rallies, and slow their spending on pull-backs as conviction returns.”
The company said, “The response of 'the little guy' to the evolution of Bitcoin as an asset can be seen in the supply distribution,” on Twitter Wednesday.
The response of 'the little guy' to the evolution of #Bitcoin as an asset can be seen in the supply distribution.— glassnode (@glassnode) June 16, 2021
Entities with < 1BTC (sat stackers) almost own 5% of the supply and have accumulated in four accelerating phases.
Live Chart: https://t.co/IujxVGegF9 pic.twitter.com/GU5a6emJBU
As the crypto sector is growing, institutional as well as now even state adoption of Bitcoin comprise most of the headlines when it comes to expanding influence, it is individual small-scale and retail investors who are making noticeable inroads into the market this year.