Bitcoin Price Surge Linked to Decline in HODLed Coins
By: Isha Das
Onchain Highlights and Market Trends
DEFINITION: Lost or HODLed Bitcoins indicates moves of large and old stashes.
Bitcoin's HODLed or lost coins have displayed notable fluctuations this year. Data from Glassnode shows a significant decrease in the amount of HODLed or lost Bitcoins around late May 2024, coinciding with Bitcoin's price surge to approximately $70,000. This decline, from around 7.95 million BTC to approximately 7.7 million BTC, suggests a considerable movement of long-dormant coins into circulation. This activity is likely indicative of profit-taking by long-term holders and movements from prominent wallet holders such as Grayscale Investments.
Historically, similar patterns were observed during late 2017 and early 2021, reflecting spikes in Bitcoin's price which led to reduced levels of HODLed or lost coins. This trend underscores the correlation between Bitcoin's market price and the actions of long-term holders. Monitoring the HODLed or lost coins metric provides valuable insights into market sentiment and potential future price movements.
In related news, Metaplanet, an influential crypto investment company, announced its plans to raise $68 million, aiming to allocate nearly $59 million of this capital towards purchasing additional Bitcoin. This substantial investment highlights Metaplanet’s confidence in Bitcoin’s future potential and its strategic move to bolster their crypto treasury significantly.
These noticeable shifts in Bitcoin holdings and investment strategies align with broader market activities and trends. As major institutional players like MicroStrategy and Metaplanet fortify their positions in cryptocurrency, it underscores the critical role of Bitcoin in global financial markets and the strategies long-term holders might employ to navigate the ever-volatile crypto landscape.
