Analysis: Bitcoin investors hold onto their coins, while miners hoard them

According to Cryptopotato on August 31, Bitcoin miners and investors slowed down the pace of selling tokens, and the atmosphere of "hoarding" became prominent. We have to wonder if they are waiting for the big bull market to come again.

Recent data shows that the number of bitcoins that have not been moved for two years or more has reached a three-year high, and the "hoarding" mentality is prevalent. At the same time, miners have also followed suit, and the bitcoins they hold have reached the highest level in two years.

BTC investors hold on to their coins and don’t sell

Glassnode, an analytics company that tracks the movement of Bitcoin addresses to understand investor behavior, recently found that Bitcoin HODLers have been hoarding more and buying less since the summer of 2019. The percentage of BTC that has not been moved for more than two years has soared from 34% in July 2019 to 44% now, reaching a three-year high.

Interestingly, the metric also hit a high of 46% when Bitcoin rallied to its all-time high in late 2017 and early 2018. However, as Bitcoin approached $20,000, investors began to sell the token, a trend that lasted for more than a year until it reversed in 2019 before Bitcoin rallied again.

Another indicator that confirms that Bitcoin investors are holding onto their coins is the 1-year HODL line. It refers to the number of major cryptocurrencies that have not moved on the blockchain in the past 12 months (or longer). According to Cryptowatch monitoring, it has hit an all-time high of 63%+.

Miners prefer HODL

Glassnode studied Bitcoin miners’ addresses and found that they have not sold their coins despite the surge in Bitcoin prices since the third halving. Currently, miners hold more than 1.8 million Bitcoins, the highest point in two years.

Like investors, Bitcoin miners have begun to reduce their selling since last summer. However, the above chart shows that they sold a significant portion of the halving process in May.

In addition, miners usually need to sell tokens to pay for electricity during the mining process, which may further drive the rise of Bitcoin. Since the halving, the price of Bitcoin has risen by more than 35%, giving miners more reason to choose to sell. Although the block reward is reduced by half after the halving, miners are temporarily inclined to hold on to their coins and wait to sell.