Data reveals that 75% of BTC is held by long-term holders
At a time when Bitcoin (BTC) is attempting to reach the psychologically significant level of $20,000 and the cryptocurrency market remains calm, long-term investors of the flagship digital asset are still holding on to it.
Specifically, long-term holders are tenacious in their ‘hodling’ habit and today possess over 75% of all Bitcoin in existence, the largest proportion in seven years – since October 2015, as discovered on October 25 by martuun, an analyst at the crypto analytics platform CryptoQuant.
According to the expert, “long-term holders are seasoned market players who have seen several market stages,” adding that:
“As a result of their decreased spending habit, they are the last-resort hodlers who provide Bitcoin with significant support.”
One of these long-term ‘hodlers’ is Cathie Wood, CEO of investment management company Ark Invest, who said in a podcast by Peter McCormack titled “What Bitcoin Did” on October 21 that she acquired $100,000 worth of Bitcoin when it was going for roughly $250 and has not sold it to date.
Considering Bitcoin’s historical price fluctuations, this indicates that she acquired her Bitcoin holdings in 2015. Considering its pricing at the time of publication, this indicates that her current return on this investment is somewhat more than $7.7 million.
In the meanwhile, martuun observed that “coins are migrating from younger, less experienced market players to long-term holders,” adding that “this process will take time, but once done, Bitcoin may enter a new phase.”
In the meanwhile, crypto researchers PlanB and Josh Rager have both claimed that Bitcoin might see a big price increase following its next halving event, which is scheduled for May 2024, when the reward for each newly-created block would be reduced to 3.125 BTC.
At the same time, ultra-wealthy investors in Hong Kong and Singapore are becoming more interested in Bitcoin and other crypto assets, such as Ethereum (ETH) and non-fungible tokens (NFTs).
According to Finbold, Bitcoin outperformed stocks and the vast majority of major fiat currencies in the third quarter of 2022, with the exception of the U.S. Dollar Index.