According to digital asset manager Grayscale, current investment patterns in Bitcoin reflect the trends from early 2016. At that time, the Bitcoin price made an astronomical rally of 4,400% to its all-time high of around USD 20,000 in less than 2 years. Since, according to various forecasts, the price target of USD 100,000 is repeatedly mentioned for a possible next bull run, it stands to reason that the BTC price is already well on the way there. What exactly are the statements made by Grayscale about?
The Hodler have BTC under control
Phil Bonello, Grayscale’s research director, reports that there are a growing number of investors who are holding their BTC for the long term. In the grayscale holder vs. Speculator Index is the percentage of coins that are held long-term – BTCs that haven’t moved in one to three years – rising sharply. Meanwhile, the percentage of coins that are speculated with – BTCs that have moved in the last 90 days – is declining, similar to 2016 before the Bitcoin price rally.
Bitcoin price rally by 4,431%
Bonello also notes that there has never been a higher amount of Bitcoin that has been held for more than a year. While this metric is limited to the supply side, in theory it is bullish for the Bitcoin price. On the one hand, there is less BTC available on the market for daily trading. On the other hand, it shows the strong conviction of investors in the asset.