Bitcoin Newbies Are HODLing as Prices Rise, Blockchain Data Suggests

The new generation of HODLers were forged during market rallies over the past year, and show no signs of slowing down.

AccessTimeIconApr 1, 2021 at 12:08 p.m. UTC
Updated Sep 14, 2021 at 12:34 p.m. UTC

There's a new generation of bitcoin HODLers.

New research from Glassnode, an on-chain data platform, shows continued growth in bitcoin (BTC) held between one month and six months, indicating strong conviction behind the recent price rally.

These coins were accumulated throughout the recent bull market, which means new HODLers (meaning, those holding crypto) are sitting on a near 500% increase since October.

  • These HODLers were “forged in the dynamic market rallies brought on in 2020 and 2021,” according to Glassnode. “Many are on their way to becoming classified as long-term holder coins.”
  • BTC purchased between $10,800 and $58,800 now represents 25% of the total supply with no sign of slowing down, based on Glassnode’s data.
  • This means HODLers have continued to accumulate BTC throughout this bull market.
  • "HODLed coins are beginning to mature, and continued outflows from exchanges demonstrates accumulation is not slowing down," according to Glassnode.

Also, more BTC investors are moving their holdings into storage, which suggests less interest in short-term trading. Over the past 12 months, over 3% of the circulating BTC supply has migrated out of exchanges and into third-party wallets, according to Glassnode.

“Only two major exchanges have seen aggregate positive inflows (increased balances), Binance and Gemini. Gemini inflows will also correlate with Gemini’s institutional custody solutions, which further adds to the supply held in long-term storage.”

“Strong signals of accumulation show a supply vs. demand balance that is unlike any bull cycle we have seen before,” wrote Glassnode.

Chart shows one-month to six-month BTC HODLers reaching a new high.
Chart shows one-month to six-month BTC HODLers reaching a new high.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.