HODL Strong: Over Half of The Bitcoin Supply Hasn’t Moved in Over a Year

Tony "The Bull" Severino

5 years ago

2 mins read

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The term HODL is an acronym derived from the phrase “hold on for dear life,” which became a widely popular recommendation for investors to remain steadfast in when Bitcoin’s notorious volatility peaks.

It appears that crypto investors are taking note of the tip and holding strong, as more than half of the entire Bitcoin supply has been dormant in over a year.

HODL Effect: More Than Half of the Bitcoin Supply Remains Dormant For a Year or More

Bitcoin was designed to offer many unique attributes that are a benefit over the fiat currencies that make the world go round today.

While central reserves such as the Fed can simply print more and more fiat currencies, Bitcoin, however, is digitally hard-capped so that the supply is limited to only 21 million BTC.

The scare supply is just one of the many attributes that give Bitcoin its value as a disruptive financial asset.

The idea is that due to the cryptocurrency’s limited supply, it becomes easy for the scales to tip in favor of demand, causing the asset’s value to rise due to simple supply and demand market dynamics.

However, there is an overlooked factor that may be causing Bitcoin’s supply to function as if it was even more limited: the HOLD effect.

Those who have spent any period of time holding Bitcoin should be well accustomed to the wild volatility the asset is known for, causing massive price fluctuations driven by speculation.

Those who decide to trade Bitcoin’s peaks and troughs oftentimes get chopped up in the volatility, resulting in massive losses of capital.

But rather than trying to sell tops and buy dips, along the way, crypto investors wised up and realized that simply holding Bitcoin and other crypto-assets oftentimes resulting in a better ROI.

It has resulted in a phrase coined that reminds crypto investors to hold on tight, dubbed HODL, or “hold on for dear life.”

Crypto investors are, according to new data, taking this tip to heart, and are holding their Bitcoin tight.

Wow, 12.6 million Bitcoin have not moved in over 1 year!

This is MIND-BLOWING given that these HODLers saw $BTC go from $3.5k to $13.8k and back down again, unshaken!

Who are these CRAZY #Bitcoin HODLers? Well, I'm one of them, are you? pic.twitter.com/YRG50LEZzQ

— The Moon (@TheMoonCarl) January 27, 2020

So tight, in fact, that over half of the Bitcoin supply has remained dormant for a period of one year or longer. Of Bitcoin’s limited 21 million BTC supply, over 12.58 million BTC has remained dormant for a period of one year or more.

It also suggests that those who bought Bitcoin’s current bear market bottom in December 2018 at around $3,100, are likely to remain confident that the bottom is in, and won’t be selling the asset anytime soon.

Bitcoin is expected to reach prices of $100,000 to as much as one million dollars per BTC in the future, prompting many to accumulate the asset for the sake of buying and holding for the long-term.

With a financial opportunity like that in front of investors, it’s no surprise they’re not seeing and instead are holding strong.

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.

Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.