Bitcoin HODLers Resist Selling Amid Market Pressure

The Bitcoin industry has been facing intense scrutiny and pressure from US authorities, impacting major companies and projects. However, despite the challenges, Bitcoin has displayed resilience and is slowly recovering. At the time of writing, the price is almost back to $26,000 according to CoinMarketCap data, with the market finding its balance once again.

The driving force behind Bitcoin’s stability lies in its long-term investors. Referred to as “Long Term Holders” by Glassnode, these entities hold onto their Bitcoin for more than 155 days. Statistically, this group of Bitcoiners is less likely to sell their coins, providing crucial support to the market.

Notably, 68 percent of all Bitcoin has been held at the same address for over a year, reaching an all-time high. This reveals the unwavering confidence that Bitcoiners have in the project’s future. While the year 2022 may have been challenging, the current year has shown significant improvement. Moreover, Bitcoin enthusiasts eagerly anticipate the upcoming halving scheduled for 2024.

The halving event, which cuts the block reward for miners in half, plays a vital role in reducing Bitcoin’s inflation. This reduction occurs because the block subsidy for miners is the sole method of introducing new Bitcoin into circulation, limited to approximately 21 million coins.

Analyzing Glassnode’s data, we find another intriguing insight. The number of Bitcoin supplies remaining in the same address for two years has surged in recent months. This surge could be attributed to the bull run that reached its peak in the early months of 2021.

In that period, many newcomers entered the market, who haven’t found the right moment to sell. Gradually, these individuals have turned into true hodlers, steadfastly holding on to their Bitcoin. It is likely that they intend to sell only when the price reaches significantly higher levels close to previous all-time highs.

Bitcoin’s resilience and the dedication of long-term holders are crucial factors driving its progress. Despite external pressures and market fluctuations, Bitcoiners remain confident in the cryptocurrency’s potential. As Bitcoin heads towards the halving event, anticipation builds for the future of this digital asset.