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- Bitcoin Hodlers Become Net Buyers
- Long term investors are consolidating their holdings of Bitcoin
- Supply held by long term holders has increased from 11 million to more than 11.6 million
Bitcoin Hodlers or investors who look at long-term investment in the cryptocurrency are increasing their Bitcoin holdings amidst forecasts of a more profound price drop. According to one research firm, the data reveals that the Hodlers have become buyers and want to increase their Bitcoin holdings.
Hodler net position change to positive
The Glassnode data reveals that bitcoin “hodler net position change,” which keeps track of buying/selling activity of investors holding coins for six months or more, has become positive for the first time since last October.
Delphi Digital also confirmed the above fact in its market analysis dated June 16 that the net positions of BTC HODLers are an excellent indication of the sentiments of longer-term investors who are thinking of consolidating their holdings of Bitcoin. Glassnode also confirms that the supply held by long term holders has increased from 11 million to more than 11.6 million in the past few weeks.
Bitcoin: Hodler net position varies
Hodlers are pushing bullish pressure on the market; it does not necessarily transform into a sharp rally. The bullish trends are only visible after the hodlers had accumulated a substantial amount of bitcoins.
An example was the situation in 2018 when the indicator was positive it was a negative year for bitcoin, and in 2019 when the crypto coin remained subdued below $5,000. The bullish sentiments hit the market in the second quarter of 2019, and the values of the cryptocurrency were pushed up to $13,880 by the end of June.
Bitcoin imminent death cross
Kraken research on past instances of death crosses on the daily chart was aligned with sell-off in the days that followed or a continued macro downtrend that confirmed a bear market. Macro funds which have purchased bitcoin as a store of value may be tempted to sell if U.S. Treasury bond yields rise further. U.S. Treasury bond yields have reached a 12-month high of 0.219%. The 10-year yield rose nearly ten basis points to 1.59% on Wednesday, and the Federal Reserve has indicated a future interest rate increase much earlier than anticipated.
Bitcoin is currently trading at $39,450, a 2% gain on the day. Year 2021 has turned out to be an exceptional year for cryptocurrencies, especially Bitcoin with the leading cryptocurrency seeing tremendous volatality in the past two months. However, heat maps reveal that year to date gains have been immense. Bitcoin has shown the 2nd worst YTD performance of the 50 top cryptocurrencies. However, it must be noted that Bitcoin is the leader among cryptocurrencies. An array of factors led to its decline, including Elon Musk’s U-turn on cryptocurrencies, China coming down heavily on crypto mining citing environmental concerns, and of course, Crypto Whales selling.
BTC to rebound?
Skeptics believe that there is still scope that Bitcoin’s rebound in the coming months. At the time of writing, the Bitcoin is placed at $36,515.28, down -4.81% with a 24-hour trading volume of $36,85,67,75,006.
Experts hopeful of hodlers buying spree will boost market confidence
The leading cryptocurrency could cross this landmark only after a gap of 16 months. In the intervening period, cryptocurrencies remained in a bearish phase falling from $13,000 to $4,000 between August 2019 and March 2020. In this phase, Hodlers were net buyers, and the trend continued till the subsequent recovery and began distributing coins in November. Experts are waiting to see if hodlers continue to buy in the coming weeks and restore the badly battered market confidence.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
