More bitcoin is being HODLed than ever before, with a record amount of BTC sitting untouched. It’s perhaps no coincidence this comes at a time when uncertainty in the fiat system is at an all-time high.
Bitcoin Is Being Held
A record 68% of BTC has been held for at least a year, with 55% held for two years and 40% for three.
This demonstrates that bitcoin HODLers have more faith than ever in the long-term potential of the world’s leading digital asset.
Not only this but with the U.S. banking crisis and debt ceiling impasse currently unfolding, more people are looking to store their savings in assets that can act as a store of value.
Bitcoin fits the bill to a tee.
As the only digital asset with intrinsic value, thanks to the Proof of Work consensus mechanism, bitcoin is the perfect safe haven asset to ride out the fiat storm.
Also, as the only digital currency not being considered a security by the SEC, bitcoin is safe from the kind of regulatory scrutiny other digital assets are falling prey to.
All this has given bitcoin HODLers the confidence they need to hold on to their BTC and ride out the bear market.
Are We At The Start Of A New Bull Run?
MicroStrategy CEO and famous bitcoin bull Michael Saylor has argued that “Bitcoin’s found the bottom… I think we’re on a bull run.”
The fact that more bitcoin is being held than ever before, and for longer than ever, does suggest bullish market trends, as a supply squeeze could push up the price.
With the network also approaching the next halving, the current inflation of bitcoin supply will also be reducing.
These factors, coupled with the current economic uncertainty of the fiat world, all point to bitcoin growing its dominance in the near future.
Saylor also argued that we will soon be seeing more mainstream institutional adoption of bitcoin as traditional financial firms warm to the idea of holding it on their balance sheets.
If bitcoin really does gain mainstream adoption as a reserve asset, HODLing will be taken to new heights, even surpassing the current peak.
Long-term Bitcoiners might be starting to feel a bit smug at all the naysayers who have claimed bitcoin has no intrinsic value and will eventually go to zero.
The way things are going, the dollar will hit zero before bitcoin does.
