In the world of cryptocurrency, there is a word that frequently appears on various social media and forums - HODL. This word originated from a typo, but it unexpectedly became the creed of cryptocurrency holders. HODL stands for Hold, Patience, and a firm belief in long-term value. Recently, on-chain data seems to be telling a new story about Bitcoin holders.
The protagonists of the story are those who hold Bitcoin. In the past few months, they have experienced the dramatic fluctuations in the market and witnessed the ups and downs of prices. Some chose to take profits, while others chose to continue holding. But data shows that more and more Bitcoin holders are turning to holding and accumulating. Among them, there are both large investors and ordinary investors.
So, what makes these holders so determined? Let’s follow the data and find out.
First, we see that those who hold Bitcoin for the long term (we call them LTHs) are resuming their holding preferences. When Bitcoin prices hit an all-time high in March, many LTHs chose to withdraw their funds. But now, they are embracing the HODL creed again. In the past three months, LTHs have accumulated a total of 374,000 Bitcoins. This is a clear sign that they are confident in the long-term prospects of Bitcoin.
Secondly, the data of the spot market is also quietly changing. For some time, seller pressure has been looming over the market. But recently, this pressure has eased. Although the recovery of buyer demand still needs time to be confirmed, at least, sellers are no longer so eager to sell their Bitcoin.
Once again, we found that although LTHs took some profits when the price of Bitcoin was close to its historical high, the proportion of Bitcoin wealth they currently hold in the entire network is still at a historical high. What does this mean? It means that if the price rises further, LTHs still have enough "ammunition" to take profits. But at the same time, this also shows that they are full of expectations for higher prices and will not be easily satisfied with the current price.
Finally, an interesting indicator, the LTH seller risk ratio, is also sending us information. This ratio is currently at a low level, indicating that the profit margins obtained by LTHs are relatively small. In other words, they do not think that now is a "high point". In their eyes, the price of Bitcoin still has room to rise, so they choose to continue holding and wait for higher prices.
At this point in the story, we seem to be able to see a vague outline: after experiencing the ups and downs of prices, Bitcoin holders are gathering again under the banner of HODL. They have patience, confidence, and expectations for higher prices. This resilience is a major feature of the Bitcoin ecosystem.
Of course, market fluctuations are inevitable, and no one can make accurate predictions about the future. But through on-chain data, we can at least get a glimpse of some of the behavioral characteristics and trends of holders. These data, like interesting stories, give us a more intuitive understanding of the Bitcoin market.
For ordinary investors, this story may bring some enlightenment. In the world of cryptocurrency, price fluctuations are often frightening, but the real long-term value needs time to prove. Those who choose to HODL may not be able to accurately predict every market fluctuation, but their belief in Bitcoin has always supported them.
This belief comes from their understanding of technology, their recognition of the concept of decentralization, and their expectations for financial innovation. For them, Bitcoin is not only an investment target, but also a symbol of the future. And every time they hold Bitcoin, they are voting for this future.
Of course, this does not mean that we can blindly follow. Investment is always accompanied by risks, and everyone needs to make decisions based on their own circumstances. But the behavior of those long-term holders in the story may give us some inspiration: when facing market fluctuations, we need to remain calm and rational; when making decisions, we need to have a long-term vision; on the road of investment, we need to be patient and resilient.
