Bitcoin hodl waves indicate 60% of the cryptocurrency is being hoarded – analysts suggest a bull run could be in the offing
Bitcoin‘hodl’ (holding) levels have reached 2016 levels, according to crypto analysts.
- According to trends, these ‘significant hodling’ levels were seen just before the $20,000 bull run in 2017.
- Support from well known hedge fund manager Paul Tudor Jones could also be one of the reasons behind Bitcoin seeing significant hodling activity.
- In the last three months, the value of Bitcoin has increased by more than 80% after the massive 37% single-day crash on March 12.
AdvertisementBitcoin, the most popular cryptocurrency, likely has a massive bull run in the offing. According to Bitcoin analysts, there has been ‘significant hodling’ activity in the
What is hodling?
According to Bitcoin analyst Phillip Swift, 60% of all the Bitcoin (BTC) available has not moved in the last one year – essentially, this 60% of the cryptocurrency has not been traded at all. This is known as ‘hodling’ – a term that means holding but is spelled as such due to a typing error.
“60% of all bitcoin has not moved on the blockchain for at least 1 year. This is an indication of significant hodl’ing. The last time this happened was in early 2016, at the start of the bull run,” said Swift.
60% of all bitcoin has not moved on the blockchain for at least 1 year. This is an indication of significant hodl'… https://t.co/P3aUGT1q1F— Philip Swift (@PositiveCrypto) 1590504958000
This hodling activity was seen before the $20,000 bull run in 2017
According to analysts who watch Bitcoin, this significant hodling activity in Bitcoin was previously seen before the $20,000 bull run in 2017.
In fact, in the last three months since the massive 37% crash on March 12, Bitcoin has recovered by more than 80% to cross the $9,000 level.
Interest from institutional investors like Goldman Sachs turned Bitcoin investors bullish
One of the reasons behind the massive hodling in Bitcoin could be the interest from institutional investors like Goldman Sachs and hedge funds.
Goldman Sachs (GS) hosted a call to discuss the effect of US economic policies on Bitcoin, among other assets. However, leaked slides suggest that the investment banking company does not consider Bitcoin to be an “asset class”.
Apart from GS, well known hedge fund manager and founder of Tudor Investment Corp., Paul Tudor Jones came out in support of Bitcoin. “Bitcoin reminds me of gold when I first got into the business in 1976,” he said in a market outlook note.
“The best profit-maximizing strategy is to own the fastest horse. If I am forced to forecast, my bet is it will be Bitcoin,” he further added.
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