According to Santiment, a cryptocurrency research platform, the proportion of Bitcoin hodlers is increasing because traders seem more and more satisfied with keeping their baskets dormant for the long term.
Bitcoin (BTC) Hodler Increase Acceleration
Santiment explains that hodlers are defined as those who have not moved their coins for at least six months, indicating a strong belief in the future of Bitcoin.
Analysts argued that the upward trend in the number of hodlers is similar to the rally in 2021 from January to April, when the Bitcoin price rose above $ 64,000 for the first time.
According to the data, the increase in the number of Bitcoin hodlers has reached its fastest level since early 2021.
💰 There is a rising rate of #Bitcoin #hodlers as traders seem to have become increasingly content in keeping their bags unmoved for the long-term. We saw a similar trend from January, 2021 through April, 2021 when $BTC rose above $64k for the first time. https://t.co/xrwNhcqVLo pic.twitter.com/wYFBsx6Css
— Santiment (@santimentfeed) April 9, 2023
However, Santiment also warned that there are some red flags that could point to a potential reversal in the near future. The platform pointed out that the large whale transactions that took place last month could be a cause for concern for BTC investors.
Santiment stated that the five largest Bitcoin transactions so far this year all took place in March, with the largest BTC transfer worth approximately $564 million.
Santiment analysts also recently mentioned Dogecoin's latest rally.
The platform argued that Dogecoin's market cap to realized value (MVRV) ratio over the past 30 days is below the "danger zone", indicating that the coin is not overvalued and may continue its upward trend.
*Not investment advice.