On-chain data shows people are hodling Bitcoin despite price slump
Bitcoin has seen a major price slump in recent weeks, but the amount of people who still own bitcoin remains steady. The most probable reason is that some are holding because they believe it will experience another price surge soon and thus be worth more than before.
The “hodling” is a term that refers to holding onto Bitcoin, even though the price has gone down. The on-chain data shows that people are still hodling despite the recent dip in price.
According to the most recent statistics from analytics firm Glassnode, individuals have been hoarding Bitcoin for the final few months of 2021.
This trend is expected to continue in the next months, according to several on-chain data.
Even Bitcoin’s recent drop below $48,000 is unable to shake these diamond hands.
Bitcoin has been on a gradual decline since hitting an all-time high of over $69,000 in early November, closing the year at an unsteady $45,500. And, although it recovered marginally at the start of the week, it shows no prospects of breaking past the critical $50,000 barrier very soon.
From November 2021 to January 2022, a graph depicting the price of Bitcoin was created (Source: TradingView)
The falling price of Bitcoin, on the other hand, hasn’t resulted in a major sell-off. According to the most recent statistics from analytics firm Glassnode, a growing percentage of individuals are hoarding bitcoins and have no intention of selling them anytime soon.
More BTC left exchanges than came in during the last week, resulting in a $425.6 million negative net flow.
Weekly On-Chain Exchange Flow #Bitcoin $BTC $8.5B in $8.9B out Weekly On-Chain Exchange Flow -$425.6M in net flow#Ethereum $ETH $5.0 billion in, $4.4 billion out +$597.1M in net flow#Tether (ERC20) $USDT is the currency of the United States of America. $5.1 billion in, $6.4 billion out -$1.3 billion in net flow https://t.co/dk2HbGwhVw
— January 3, 2022, glassnode alerts (@glassnodealerts)
The number of Bitcoin deposits into exchanges has also dropped dramatically, hitting a three-month low of 2,390 on January 2nd.
Number of Exchange Deposits in BTC (Hourly Chart, 7d MA)
At the start of January, the total number of transactions on the Bitcoin network fell to a four-month low of just over 10,000. The declining trend seems to be continuing, according to the statistics.
Transactions in BTC (Hourly Chart, 7d MA) (Source: Glassnode)
And, although more bitcoins have seemed to be standing still in recent weeks, the broader tendency of hodling isn’t new. On January 3rd, the quantity of supply that was last active between one and two years ago hit a one-year high of almost 2.3 million BTC. That’s over $110 billion in Bitcoin that hasn’t been touched in at least a year.
Last Active 1y-2y BTC Amount of Supply (Hourly Chart, 1d MA)
Posted in: Analysis, Bitcoin
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