HODL Mode On: More Than 50% Bitcoins Did Not Move Over A Year

The Research company Delphi Digital has announced that “bitcoin hodling” for more than one year by their owners has reached its peak level. The company uses data from Bitcoin’s Unspent Transaction Output (UXTO) in an attempt to determine the pivot point when sellers leave the market, demonstrating accumulation. In their opinion, the indicator can indirectly represent the bottom of the bitcoin price. Each time a BTC part is spent, a new UXTO is created, denoting a move. This helps analysts determine how much of the bitcoins are being held by the investors. If the cumulative age of UTXO declines, it means that the transaction activity has increased, and vice-versa.

The“1+ year” UXTO indicator first began to decline during the 2017 bull run. It showed that profit-taking started by the long-term investors. Starting in April 2018, this indicator began to grow again, which meant that the sellers were exhausted and the market may have shifted towards accumulation again.

The bear market data for 2014–2015 shows that after the “1+ year” UXTO parameter climbed above 50%, the bitcoin price bottom soon followed. According to the current bear market data, the indicator crossed the border of 50% once again, shortly before the fall of BTC to the minimum of 2018, equal to $3,250 this time.

Delphi Digital also studied the "5+ years" UXTO: it has been steadily growing since its peak in 2014 and reached the level of 20%. It indirectly displays either the most long-term holders, or bitcoins forever lost due to the death of the owner or private keys’ loss. It means that more than 4 mln BTC could potentially be permanently locked.

Image courtesy of Huffington Post