The Resilience of 2017 Hodlers
Despite Bitcoin’s current value skyrocketing compared to its 2017 bull run, many original investors from that period are standing firm, refusing to sell their precious BTC. Recent insights from Unchained Capital illuminate a captivating trend in Bitcoin ownership, showcasing how hodlers from the golden year of 2017 command a notable portion of the market supply.
Who Are the 2017 Hodlers?
According to Unchained Capital’s HODL Waves chart, those who bought Bitcoin between February 2016 and February 2018 control a significant 13.38% of the total Bitcoin supply now—up from a meager 5.57% since the crash of March 2020. These investors could teach a masterclass on HODLing, as they’ve managed to withstand not just the 2017 highs, but the protracted bear market that followed.
Statistics Speak Volumes
It’s fascinating to see that, as of the beginning of January, 59% of all Bitcoin was sitting untouched for more than one year. By the end of the month, this percentage slightly dipped to 57%, reflecting a drop of around 372,320 BTC. This shift suggests that the vast majority of transactions were initiated by those holding Bitcoin for less than three years. However, the 3-5 year holders remained undeterred, indicating their unwavering commitment to their investments.
Crisis? What Crisis?
Contrary to popular myths circulating around the Bitcoin realm, the first breach of the $20,000 mark since 2017 wasn’t met with a wave of panic selling among original investors. The lore suggests that this milestone kicked off a mass exit, but the data strongly disagrees. The price dips, even past the lofty heights of $30,000, $40,000, and beyond, have only created buying opportunities among this passionate investor base.
The Impact of Newer Investors
The Bitcoin landscape is more diversified than ever, with seasoned investors from before 2011 also holding a hefty share. Their presence has grown from 6.85% to 10.24% since March 2020. Meanwhile, a tantalizing discovery of a stash of 100 BTC dating back to 2010 recently surfaced, proving that some investors are in it for the long haul.
The Corporate Giant Factor
Adding an interesting twist to this narrative are the corporate entities stepping into the Bitcoin fray. Companies like MicroStrategy are leading the charge, with their holdings now surpassing 90,000 BTC. This influx of institutional investment could be influencing overall market behavior, creating an even more complex web of buyer dynamics.
A New Era of Holding
With traditional market behaviors being disrupted by crypto, one thing is clear: the Bitcoin holding ethos is changing. As savvy investors—whether individuals or corporations—embrace the philosophy of ‘Not Selling’, the future of Bitcoin could remain stubbornly resilient, regardless of market fluctuations.
