- HODL is such a popular trading strategy in the crypto community that it has transcended into a meme.
- HODLers are flexing their muscles as they refuse to sell even if they are in profits.
- Add to that the halving and we have the recipe for bitcoin rocket fuel.
Many bitcoin traders laugh at the idea of HODL (holding on for dear life). They think that it is not a sound trading or investing strategy. If you buy and hold on the way down, it’s very likely that you’ll use the same approach on the way up. The rigidity of this method makes it difficult for many investors to lock in gains.
Nevertheless, the strategy is so popular that it has become a meme.
HODL’s acceptance appears to be bordering obsession. A new report reveals that millions of BTCs have not moved in a year.
Holders Refuse to Sell Even if They Are in Deep Profits
The S&P 500 is up nearly 27% year-to-date. If the index closes the year with gains around that number, then many investors would consider 2019 as a good year.
Bitcoin holders are also having a great year. The top cryptocurrency is by over 95% year-to-date. The numbers align. According to The Block, 61% of bitcoin holders are sitting in profits.
Even with gains that are over 250% higher than the S&P 500, there’s a sense that bitcoin investors are far from satisfied. Many expect mind-numbing and jaw-dropping performance from the dominant cryptocurrency.
I say this because BitInfoCharts show that 11.58 million BTCs have not moved in over a year.
In other words, 64% of the over 18.04 million bitcoin in circulation are not moving. This means that only 6.46 million BTCs are being used for speculation or payment settlement. At bitcoin’s current price of $7,260, only $48.99 billion worth of BTCs have been changing hands over the last year.
This has tremendous bullish implications for the number one…