Bitcoin in 'HODL' hits a 5-year high as investors remain unaffected by market volatility
Most Bitcoin (BTC) investors appear to be banking on the possibility of the asset rallying in the future despite the extended correction as the cryptocurrency continues to consolidate around the $20,000 level.
Therefore, investors are opting for the ‘HODL’ investment strategy with macroeconomic factors outweighing the general crypto market. In particular, as of September 29, the amount of Bitcoin under HODL had hit a five-year record high at 7,509,524.362 BTC equivalent to $341.55 billion, data by Glassnodeindicates.
It is worth noting that for long-term holders, it makes sense to hold onto the asset considering selling is leading to losses. In this case, Glassnode data also indicates that long-term Bitcoin holders are selling the asset at a loss of about 42%.
Trust in Bitcoin’s long-term prospects remains strong
The data can be interrupted as the long-term investment conviction among Bitcoin holders remains strong. Most investors are banking on factors like increased adoption and depreciating supply to spark a Bitcoin rally.
What’s more, the amount under HOLD potentially shows Bitcoin’s status as a store of value and a hedge against inflation might be gaining momentum. Therefore, Bitcoin appears to be becoming more valuable in the eyes of some investors, and any price dips make it viable to invest in.
Additionally, the low price presents a perfect scenario to accumulate the asset in the wake of the increased devaluation of most global fiat currencies. Indeed, with the decreasing value of the pound sterling rampant, data shows investors are likely to prefer Bitcoin, as highlighted by the GBP/BTC trading volume.
Furthermore, the data points to resilience and maturity among investors who are not swayed by emotions to sell the asset amid turbulent moments.
Bitcoin potential to emerge top amid high inflation
At the same time, market opinion leaders are projecting assets like Bitcoin are likely to rally based on how central banks handle the current inflation.
As reported by Finbold, billionaire investor Stanley Druckenmiller believes if investors lose trust in central banks’ tightening policies, cryptocurrencies might experience growth in coming years.
In the meantime, Bitcoin appears to stabilize above the $19,000 mark, trading at $19,500 at press time, with gains of over 3% in the last 24 hours.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
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