Rising markets are a test of investor assertiveness. And it is that, although it is possible that they remain in time, history has proven us many times that everything that rises in the financial markets, must fall. Therefore, large BTC savers are faced with the important decision of what to do with their cryptocurrencies, sell them and guarantee their profits, or keep them. And so far, they seem to be leaning towards this second option, as Bitcoin hodlers refuse to sell.
The Bitcoin market stirs
It does not matter what position we have with respect to the crypto market. Let’s be optimistic or pessimistic about the future of Bitcoin, if there is one thing that all BTC observers can agree on, it is that the price of the cryptocurrency has not yet stabilized. On the contrary, whether it continues its meteoric rise, or begins to fall once again, the price of the world’s largest cryptocurrency is yet to be defined.
Especially when there are so many simultaneous stimuli taking place within the crypto market with the potential to affect the price of Bitcoin. Including a decrease in purchases of the cryptoasset by institutional investors, the increase in the number of companies acquiring BTC as a store of value asset, and the arrival of stimulus checks to US citizens.
Thus, all those with savings in Bitcoin, known as hodlers, must face a complicated decision. They can conclude that the price of BTC is unsustainable in the long term, and therefore that their best option is to sell now and guarantee their profits. Or they can trust that the cryptocurrency will continue to increase in the coming months, and that therefore their investment has not yet reached its full potential.
Hodlers bet on BTC
And so far, hodlers seem to have been massively inclined to hold their positions in Bitcoin. A test of your confidence in the cryptocurrency, and also an additional boost in the price of BTC. Well, by not selling their savings, the hodlers would be avoiding an increase in the supply of the cryptoactive, which could lead to a collapse in its price. Thus, according to an analysis by the Arcane Research firm:
«The number of Bitcoins that were last active three to five years ago has grown by 1.5 million BTC since mid-May 2020. This suggests that long-term hodlers are still hoarding Bitcoin, not looking to sell at these current prices.».
This would be a good sign for the crypto market as a whole. Well, according to the experience of the last great Bitcoin bull rally of the year 2017, the moment in which the hodlers who have held their BTC for between 3 to 5 years start selling, will be when the price of Bitcoin will begin to decline until it stabilizes. So, as long as that point is not reached, we can be relatively confident in an increase in the price of the cryptoactive.