Bitcoin, my precious. THE cryptocurrency prices speaks for itself. It’s the bear market, the ecosystem does not interest us, we are among ourselves, among crypto enthusiasts. In this winter which makes calm of the markets, some are warming up and filling their wallets with satoshis. And gradually. In L’boredom of the colda new situation is required, symptomatic of the period we are going through. 76% of all bitcoins existing ones have taken up residence in the portfolios of long term investorsthe hodlers.
BTC Hodling, the art of patience
This has become the credo of the bear market. Hodl. Behind this English term hides a strategy investment which illustrates a certain wisdom coming from its initiator. Keeping your bitcoins, not as a war chest, but as a way of investing in its own right, such is the straitjacket of hodlers.
And according to Glassnode, on-chain analytics providermany people indulge in the pleasure of buy some satoshis, every week, every month… depending on your possibilities. Regularity and constancy in investment are then the technique allowing smooth the price of BTC– for fans of DCA – the important thing for the hodler is above all not to sell.
It is therefore 76% of the Bitcoin pie which is held by hodlers and the latter do not seem ready to give up a piece when we see the price of bitcoin stagnating between 26,000 and 27,000 dollars for several months now. The cake tastes like liquidity shortage and the texture of the unwavering confidence in the long-term value of the queen of cryptocurrencies.
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Bitcoin ETFs, the new incentive
Now that the number is established. Why such an interest ? L’AND F, an acronym for “Exchange-Traded Fund,” is not innocent in this matter. This bridge between traditional finance and the world of cryptos could well shake up the world of finance and our ecosystem somewhat. This financial mechanism allows investors to have exposure to Bitcoin without owning it directly.
In fact, some think that Bitcoin ETF may be the key that will open cryptocurrency to an even wider audience. Many are, moreover, financial titans who have embarked on this race. But Bitcoin ETFs also harbor their own range of complications, particularly on the regulatory side, with the bitter and bitter enemy being the Securities and Exchange Commission (SEC) and its president Gary GenslerWho pull the rug out from under the feet of Wall Street tycoons.
In the midst of these tectonic movements of long-term investors, speculators, or medium-term holders, wait, hanging from the SEC’s mouth, but not only that. THE Bitcoin halving is getting closer and many are also waiting for it. It is the second point which causes the hodler season.
As a reminder, the Bitcoin halving is a scheduled event that occurs every 210,000 blocks. Or approximately every 4 years. During this event, the reward miners receive for adding a new block to the blockchain is halved. The halving is thedeflationary soul of Bitcoin. This cryptocurrency was designed to have a limited supply of 21 million units. This is the mechanism that ensures that Bitcoin will reach this limit in a controlled and predictable manner.
Bitcoin halving, the long-awaited time for BTC hodlers
The halving has a influence on the supply of Bitcoin. As the reward for miners is reduced, fewer new Bitcoins are created and put into circulation. This serves two overarching purposes. First, it limits currency inflation, the deflationary effect that we were just talking about. Second, by reducing new supply, halving can create a scarcity effect, thereby contributing to a possible increase in price if demand remains constant or increases.
When the halving takes place, the market is often attentive and responsive. Historically, this has led to periods of volatility followed by a gradual increase in price. However, like everything in the world of investing, nothing is set in stone. Some experts argue that the halving effect is already taken into account in the current price of Bitcoin, following a logic of market anticipation. Others, on the contrary, see Million Dollar Bitcoin.
If Bitcoin were a book, we would undoubtedly be at a decisive chapter. A chapter where the characters and the issues are in full development, and where the next movements could redefine the entire story. Let us not forget, however, that the market is still young and that buyers, sellers and especially hodlers of BTC can have surprising reactions, as evidenced by the volatility of the queen of cryptocurrencies during the episode of the Fake News from CoinTelegraph.
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