- Bitcoin users increasingly going long as halving reinvigorating HODLers.
Bitcoin users are HODLing their crypto more and more as the 8 May halving looms. This trend was expected as the knowledge of a reduced supply of the world’s largest cryptocurrency is still attracting long-term positions on the price index of the cryptocurrency.
#Bitcoin HODLer Net Position Change has been growing daily since the end of March and is now hitting yearly highs.
— glassnode (@glassnode) April 22, 2020
Monitoring organization Glassnode reported an increasing number of Bitcoin being held in long positions by users. Around 75,000 Bitcoin is being added in long positions according to Glassnode which is around USD 500 million every day being HODLed in anticipation of the halving.
The metric for determining the positions of traders is known as HODLer net position change. The current level can be translated to the fact the long-term HODLers are buying the cryptocurrency as if it is a bear market and then adding it to their long-term positions.
With just around two weeks to go till the halving, interest is mounting and HODLing long-term may increase in the buildup to the halving itself. However, the data from previous halvings show that major price rallies occur some months after the halving process occurs. However, crypto may not follow precedent this time alone, especially when increased HODLing is being done by more and more investors.
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