At a moment when Bitcoin (BTC) is trying to regain the key psychological level of $20,000, and the seas remain calm in the cryptocurrency market, long-term holders of the flagship digital asset are still hanging onto it.
Specifically, long-term holders are persistent in their ‘hodling’ behavior and currently own over 75% of all Bitcoin in existence, the highest percentage seen in seven years – since October 2015, as observed by martuun, an analyst at the crypto analytics platform CryptoQuant on October 25.
Long-term hodlers’ experience
As the analyst explained, “long-term holders are experienced market participants who’ve seen different phases of the market,” adding that:
“They have a lower spending behavior statistically and thereby these are the hodlers from the last resort, providing Bitcoin strong support.”
One of these long-term ‘hodlers’ is Cathie Wood, the CEO of investment management firm Ark Invest, who said in a recent Peter McCormack’s “What Bitcoin Did” podcast on October 21 that she had purchased $100,000 worth of Bitcoin when it was trading at around $250 and that she has not sold it to date.
Considering Bitcoin’s price movements in the past, this means that she purchased her Bitcoin holdings sometime in 2015. Taking into account its price at press time, this suggests that her current profit on that investment would be slightly more than $7.7 million.
A new phase for Bitcoin?
Meanwhile, martuun noted that this means that “coins are shifting from younger, less experienced market participants to long-term holders,” concluding that “this process will take time, but when it has been completed, Bitcoin can start a new phase.”
Meanwhile, crypto analysts PlanB and Josh Rager have both suggested that Bitcoin could expect a massive pump after its next halving event, which is set to take place in May 2024, when the award for every block created will be halved to 3.125 BTC.
At the same time, the interest in Bitcoin and other crypto assets, such as Ethereum (ETH) and non-fungible tokens (NFTs), is increasing among the super-rich investors, especially in the crypto hubs of Hong Kong and Singapore.
Another bullish signal for Bitcoin is the fact that it has managed to outperform equities and most major fiat currencies in the third quarter of 2022, save for the U.S. Dollar Index, as Finbold reported.
Bitcoin price analysis
As things stand, the maiden cryptocurrency is trading at $19,280, which represents a decrease of 0.44% on the day, as well as 1.22% across the previous seven days, although the monthly chart is showing an increase of 1.25%.
The market capitalization of the still largest decentralized finance (DeFi) asset by this indicator currently stands at $369.87 billion, as per CoinMarketCap data retrieved by Finbold on October 25.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.