Glassnode, a company that specializes in on-chain analytics, has recently released statistics indicating a significant surge in the volume of Bitcoin held. A substantial portion of the cryptocurrency’s reserve remains inactive in the wallets of investors who subscribe to the idea of ‘HODLing,’ or holding onto their Bitcoin for extended periods. This trend has gained popularity in recent times.
Glassnode Holding Report
Glassnode has reported an increase in hodling across all categories, notably in the band that was last active two years ago. These coins were acquired during the early stages of the bullish market in 2021. Moreover, the total number of BTC held by long-term holders for more than 155 days has reached a new record high of 14.46 million BTC, which is around 68 percent of the total bitcoin supply. The worth of staggering value is roughly $396 billion in satoshis.
The smallest unit of Bitcoin is called a satoshi, in honor of the anonymous inventor of Bitcoin, Satoshi Nakamoto. One satoshi is equivalent to one hundred millionth of a Bitcoin, and each Bitcoin can be divided into 100,000,000 satoshis, which are often referred to as “sat(s)”.
Bitcoin’s divisibility can be highly enhanced by using the metric of satoshis. Despite the high value of a single Bitcoin in U.S. dollars, a satoshi is valued at only a fraction of a penny. This characteristic makes Bitcoin more versatile than traditional currencies, allowing people to make very small transactions.
Significance of this Hodling
The trend of HODLing Bitcoin is becoming increasingly popular as the amount of Bitcoin held for more than a year reaches unprecedented levels. This extended period of holding has led to a substantial decrease in on-chain volume throughput, as most of the Bitcoin supply is not being actively traded. The extent of HODLing throughout the supply is truly impressive and displays no indications of decelerating.
As per analysts, the probability of successfully vending coins drops substantially after 155 days. Nevertheless, the market can still experience a significant effect from their sale. While there have been instances of transferring from old Bitcoin reserves, in which “whales” – people who have amassed substantial amounts of cryptocurrency and earned considerable profits – shift their funds to different addresses, most investors usually keep hold of their coins for more than 155 days without utilizing them.
The Bitcoin supply dormancy trend suggests that those who own the cryptocurrency are resolute in holding onto their investments, possibly because they expect a consistent increase in Bitcoin’s worth.
