Maria Irene
In a market defined by its volatility, it seems an extraordinary 29.1% of all Bitcoin has remained unmoved for the past five years. This figure encapsulates a story of resilience and conviction among a group of Bitcoin owners who have navigated a myriad of price fluctuations and yet remained firm in their ‘hold-on-for-dear-life’ (HODL) strategy.
Let’s wind back half a decade. On this day in 2018, Bitcoin was trading at a modest $6,500. Just five months later, the value had plummeted by 51% to $3,100. This marked the beginning of a volatile journey, with Bitcoin soaring back up to $13,800 from December 2018 to June 2019, only to fall by another 50% in the second half of the same year.
The beginning of 2020 saw Bitcoin climb back up to $10,500. But the emergence of COVID-19 triggered another dramatic downturn, with Bitcoin’s value collapsing by 63% in a single month. Unfazed, the cryptocurrency bounced back, peaking at $64k in the first quarter of 2021. A subsequent dip of more than 50% from April to June 2021 seemed to mark another bearish trend, but by November, Bitcoin had rebounded by 139%.
Despite the dramatic price fluctuations over the past five years, 29.1% of Bitcoin owners have held firm, neither cashing in on highs nor panicking during lows. This unyielding group of holders – or “HODLers” in crypto parlance – stood steadfast even as the cryptocurrency’s value plummeted by a staggering 77.5% over 12 months. Since its Q4 lows, Bitcoin has rallied, gaining 96% in just under eight months.
These Bitcoin HODLers didn’t capitulate during periods of intense volatility and severe drawdowns. They didn’t sell when they had the opportunity to recoup their losses, and they didn’t cash out when they could have locked in substantial gains. Instead, they clung to their Bitcoin.
This analysis speaks volumes about the unwavering belief and long-term vision of many Bitcoin investors. These stalwarts saw the promise in Bitcoin beyond its immediate market gyrations, holding their positions through years of volatility.
While market predictions for Bitcoin continue to vary widely, it is clear that a significant percentage of its investors are in it for the long haul. The existence of these “HODLers of last resort” provides a bedrock of stability in a market often characterized by its unpredictability. It is a testament to Bitcoin’s enduring appeal, and proof that for many, Bitcoin is not just a speculative asset, but a long-term investment.
In the crypto world, it seems, the “HODL” mantra is more than just a catchphrase – it’s a lifestyle.
