Bitcoin (BTC): Strangely, HODLing Is All the Rage - Glassnode Analysis

Out of all existing Bitcoin trading strategies, HODLing seems to be the most favored towards the end of the year. A recent analysis by Glassnode indeed revealed that 70% of circulating Bitcoins haven’t moved for a year. Could this confirm Bitcoin’s status as an emerging store of value? Details!

Nobody Wants to Give Up On Bitcoin

The queen of cryptocurrencies has gained more than 150% in one year. This means that those who bought at the time it traded for $16,400 per coin on December 20, 2022, would have made substantial profits by selling at the current rate.

However, apart from El Salvador, whose president Nayib Bukele does not want to part with his dearly acquired Bitcoins, and MicroStrategy, Bitcoiners prefer to HODL.

As the year wraps up, HODLing seems to be #bitcoin investors' preferred dynamic, according to @Glassnode.

Data shows that more than 70% of the circulating $BTC supply has been inactive for over a year.

Watch Chart of the Day, presented by @cryptocom: https://t.co/IwiQ3pePpZ pic.twitter.com/UeLvo5TA4S

— CoinDesk (@CoinDesk) December 19, 2023

“At the end of this year, the HODLing seems to be the favorite dynamic of Bitcoin investors, according to Glassnode.

The data shows that more than 70% of BTC’s circulating supply has been inactive for over a year.

See the chart of the day, presented by Crypto.com. ”

Thus, HODL has once again won out over FOLD at the end of the year. Because only 30% of circulating Bitcoins have been sold or traded. The rest are peacefully sleeping in crypto wallets waiting for the opportune moment to significantly benefit BTC traders.

As a reminder, the term HODL, an acronym for “Hold On for Dear Life,” translates as: “Do not sell, as if your life depended on it.” According to Kraken, this strategy came from a member of the Bitcointalk forum who decided to keep his Bitcoins after deeming himself a “bad trader” in December 2013.

Another crucial point: GameKyuubi, the famous BTC trader, slipped a mistake in the title of his post. He had written “HODLING” instead of “HOLDING”. Since then, the community has adopted it: those who prefer to keep rather than sell opt for “HODL”.

When to Sell Your Cryptos?

With predictions of a Bitcoin bull run shared by social media, crafting an exit strategy becomes complex. Indeed, while buying cryptocurrencies seems like child’s play, selling similar assets requires more thought.

Firstly, let’s note that any self-respecting crypto investor must consider the following goals: minimizing losses, realizing and maximizing profits, etc. (Source: Swissborg).

A Bitcoin exit strategy can be established based on the price development of the asset, for example. The trader may decide to sell after BTC has reached a 250% increase. At this stage, support and resistance levels for Bitcoin should be taken into account.

Another common practice in Bitcoin selling is staggered exiting. Parting with your BTC on a whim, or following an analyst’s advice can lead to regrets. Those who followed CNBC’s Jim Cramer in December 2022, who suggested selling, would be able to teach us a lot more on this topic.