Bitcoin’s Halving is getting closer and closer. And while there’s a recovery in the price of cryptomoney, which is close to $10,000 per BTC once again, it’s important to know what the biggest investors in the market are doing. Especially, why are the Hodlers accumulating Bitcoins before Halving?
What did the early Hodlers think of BTC?
Investors versus the Halving
Things, including Bitcoin, only have value because we give it to them. Gold, in itself, is nothing more than a metal. Good conductor of electricity and heat, certainly, but not at all with a use that justifies its high cost.
However, for most of the world, gold is an active store of value, and it is this widespread belief that actually gives gold its value.
This applies to virtually any asset in the world. For, even the price of those with proven utility such as food, reacts according to the beliefs of consumers in the marketplace. And in the case of the crypto market
, the ultimate consumers of Bitcoin are the investors.
Therefore, it is necessary to evaluate the behavior of these investors in order to understand the general feeling of the market. Thus, when there is a massive sale of Bitcoin by major investors, we know that they do not have confidence in cryptomoney in the long term. Trying to sell their crypto assets by taking advantage of the price of the crypto assets.
Why do Hodling during quarantine?
Hodlers are starting to accumulate Bitcoin
That’s why it’s so important that Bitcoin investors are starting to accumulate cryptomoney in large quantities, according to Glassnode. Following a practice known as Hodling, which consists of the accumulation of BTC waiting for an increase in its price.
This means that if there are a good number of users doing Hodling, this means that there is confidence in the long-term performance of Bitcoin.
The current situation would be a radical change from the behavior of the market just a few months ago. When in February, even in the midst of the Bitcoin price rally at the beginning of the years, Hodlers stopped accumulating Bitcoins, losing confidence that prices would continue to grow for the time being.
They resumed their accumulation activities shortly thereafter, after the Bitcoin price collapsed. Thanks to this, investors were able to buy large amounts of BTC at reduced prices. Reaching a peak in the accumulation of cryptomoney today, with over 80,000 BTCs being held by the Hodlers every day.