Bitcoin (BTCUSD)

[ap17]

THE HODL WAVES 🌊
Today we’ll be taking a look at the classic Bitcoin HODL Waves.

Each coloured band shows the percentage of Bitcoin that last moved within that time period.

As the colours get cooler, the age bands get older (yellow being the oldest, representing coins last moved within the last 3 - 6 months).

This metric can also be used for long-term holders, but we’ll just be focusing on short-term holders today.

onchain
Here’s the breakdown:

24hr: 0.35%

1d - 1w: 1.95%

1w - 1m: 4.87%

1m - 3m: 8.52%

3m - 6m: 10.92%

That means that ~26.61% of the Bitcoin supply has moved within the last 6 months.

Which leaves ~73.39% of the Bitcoin supply NOT moving in 6+ months.

That’s an insane amount of the supply not moving.

This metric can also be used to gauge where we are in the cycle.

As the price of Bitcoin increases, the amount of short-term holders also increases. (notice that uptick in short-term holders as the price of Bitcoin rises?)

This is due to long-term holders deciding to take profits by selling their coins. (This makes those coins “young” again) 🤑

Although, each spike is smaller than the previous one…

Which means the amount of long-term holders increases with each cycle.

With such a limited amount of Bitcoin for sale, the price has no choice but to go up. 🚀