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13.65 Million BTC HODLed despite Bitcoin Sinking to $17.6k

13.65 Million BTC HODLed despite Bitcoin Sinking to $17.6k

Approximately 13.65 million Bitcoin, worth over 25 percent of the total market cap, haven’t been moved year-to-date.
Dalmas

June 22, 2022

Introduction​

Despite Bitcoin prices crashing to $17.6k last week, HODLers didn’t give up their position, recent data on June 22 shows.

65 Percent of BTC HODLed in the Last Year

According to data streams, approximately 13.65 million BTC, worth over 25 percent of the total market cap, haven’t been moved year-to-date.

Considering the market fluctuations during this time, these HODLers didn’t cash out when prices soared to as high as $69k in some exchanges in late 2021. At the same time, they weren’t forced to bow out to highly volatile market conditions, which were climactic in mid-June 2022.

Most traders (65 percent, as data shows) prefer HODLing. They are confident in Bitcoin’s prospects, which mean BTC could be fundamentally supported.

The remaining 35 percent of the total BTC mined are those in circulation. These coins are held by miners who may liquidate them to maintain rig operations amid rising costs. Another portion is held by active spot traders, who may comprise institutions, retail margin traders angling to profit from shifting volatility, or even Bitcoin holders who are active DeFi traders.

Trackers show that millions of BTC have been tokenized in various smart contracting platforms, mainly in Ethereum, where traders participate in high yield operations. Even so, with the bear market, DeFi’s Total Value Locked (TVL) has been on a free fall in the past few months.

Factoring in “Lost” Coins

Factoring in the 13.65 million BTC that has not been moved in the past year and the approximately 3.5 million coins assumed to be permanently lost or “donated,” as Satoshi once said, there could be even more upward pressure for the digital gold in the coming years.

This is because most coins are in the hands of the network’s believers, not speculators. The latter are usually mostly shaken out during tumultuous periods.

By liquidating, their action causes an oversupply, heaping more selling pressure on a fragile market that can’t be bailed out by government money like traditional “too big to fail” corporations.

Bitcoin and Crypto Market Formation Depends on FED’s Monetary Policy

Despite HODLers digging in and not giving up, the medium to long-term trajectory of Bitcoin largely depends on central banks and FED’s action.

Further interest rate hikes to curb inflation could lead to deflation, negatively impacting the markets and forcing the coin lower.

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Dalmas

Dalmas is an active cryptocurrency content creator and highly regarded technical analyst. He’s passionate about blockchain technology and the futuristic potential of cryptocurrencies.

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