Data: Bitcoin holders of 3-5 years have not sold due to price fluctuations

The HODL Waves chart shows that those who bought Bitcoin three to five years ago have not been swayed by price fluctuations to sell their holdings.

The latest data from Bitcoin financial services company Unchain Capital shows that at the beginning of January, 59% of Bitcoin had been idle for more than a year. By the end of the month, this figure had dropped to 57%, a decrease of 2%, or about 372,320 Bitcoins.

It seems that most of the Bitcoin transactions in January were Bitcoins that had been idle for less than 3 years. Bitcoins that had been idle for 3-5 years actually increased by 0.8%, and were not affected by price fluctuations at all.

January was an important month for Bitcoin stored in exchange addresses, reaching the lowest balance in two years. This shows that holders of Bitcoin for more than a year did not move Bitcoin to exchanges for sale, but moved it to safer places.

Long-term holders mostly enhanced security in January 2021 by moving funds into direct control of their private keys.

According to Unchained’s HODL Waves chart, those who bought Bitcoin three to five years ago are not selling it.

Since Bitcoin’s March 2020 low of $3,600, the percentage of Bitcoin supply that last moved between February 2016 and February 2018 has increased from 5.57% to 13.38%.

In other words, the upward price trend in 2019, 2020, and 2021 did not cause the 2017 bull run investors to sell off after surviving the multi-year bear market.

In contrast, holders of five to seven years and seven to 10 years have been declining over the past year.

The data refutes a narrative that persists online that Bitcoin’s surge above $20,000 last year for the first time since 2017 triggered a massive sell-off by investors eager to sell their holdings at par or a slim profit.

HODL Waves similarly confirms that demand for Bitcoin has not been dampened by price increases above $30,000, $40,000, or even $50,000.

Meanwhile, another group of people, those who bought before 2011, also own a large percentage of the Bitcoin supply. Since March 15, 2020, their share has increased from 6.85% to 10.24%.

Image source: Unchained Capital, glassnode, pixabay

byAmy Liu

This article comes from Bitpush.News. Reprinting must indicate the source.