Bitcoin: Holders Are Clinging To Their Assets More Than Ever

The Bitcoin market is experiencing a remarkable evolution: investors are becoming less inclined to sell their cryptos. This trend reveals a growing confidence in the long-term potential of BTC, despite its persistent volatility.

Bitcoin scarcity increases as sales decline

On-chain data reveals a striking statistic: in October 2024, less than 10% of Bitcoin holders were willing to sell their holdings. This figure marks a dramatic decrease from 26% in mid-2021 and 64% in 2013. This evolution demonstrates a growing confidence in the long-term potential of Bitcoin, despite its notorious volatility.

This trend towards “HODL” (Hold On for Dear Life) is observed both among long-term investors holding bitcoins for more than six months and short-term holders.

This phenomenon is all the more remarkable as Bitcoin has experienced significant fluctuations, with a 15% drop from its March 2024 all-time high but a rise of nearly 150% since the start of the year.

The reluctance to sell persists even in the face of usual crypto market cycles, suggesting an increasingly long-term-oriented vision among Bitcoin holders.

The factors behind this new dynamic

The approval of Bitcoin spot ETFs in the United States at the beginning of 2024 played a crucial role in this evolution. ETF issuers now manage over $57 billion in Bitcoin, with giants like BlackRock controlling over $21.5 billion in assets.

Furthermore, the options market reveals another facet of this trend. Adam Buck, CEO of Blockstream, notes the absence of options exceeding one year of maturity, highlighting traders’ reluctance to sell their call options, which would be quickly seized by the market.

This new dynamic of the Bitcoin market reflects a growing maturity of the crypto ecosystem. Both individual and institutional investors seem to be adopting a longer-term vision, increasingly perceiving BTC as a store of value rather than just a short-term speculative instrument.