7% of all the Bitcoin in existence changed hands last week – that’s just one fascinating insight provided by new data showing Bitcoin’s lifelong hodl habits.
Charts Depict A History Of HODL
Compiled by Bitcoin lending platform Unchained Capital, the analysis of Bitcoin unspent transaction outputs (UTXOs) has produced unique insights into how cryptocurrency investors store or spend their coins.
“Since all bitcoin in existence is contained in some UTXO, this means that all bitcoins have an age: not the age/time when that bitcoin was first mined, but when it was last used in a transaction,” a blog post with the findings explains.
Since Bitcoin stores its full transaction history in the blockchain, it is possible to look backwards and analyze the age distribution of UTXOs over time.
In investigating UTXO Age, the @unchainedcap team discovered the "HODL Wave" pattern in pt 1 of our Bitcoin Data Science research https://t.co/sTtGCMRRfa
— Unchained Capital (@unchainedcap) April 17, 2018
The figures balance some of the beliefs in the cryptocurrency industry which have gained traction as Bitcoin prices have grown.
Short-term investors, ‘weak hands’ and market manipulation all come face to face with actual trading habits based on UTXOs since 2009.
“Beginning in January 2018, the category of bitcoin that are 6–12 months old rebounded from a low of 7.76% to 14.63%, a doubling of its population,” the analysis adds.
Is 2018 The ‘Next HODL’?
Identifying what it calls ‘HODL waves,’ Unchained Capital notes trading activity increases during the run-up and crest of local price highs, with longer-term hodling setting in as markets subsequently retreat.
Three major hodl periods – the so-called “Genesis HODL,” “HODL of 2011” and “Great HODL of 2014” – precede the current situation, which could constitute a fourth period or “Next HODL.”
Analysis of this most recent period of activity has already caught outside attention, notably from eToro’s Mati Greenspan, who in a note to traders highlighted the 7% figure.
In addition, the data shows, a huge 58.7% of the Bitcoin supply has shifted around in the past year.
Where could the fourth HODL take Bitcoin meanwhile? The suggestion is over 2017’s all-time highs of $20,000.
Unchained Capital has meanwhile promised to issue two further editions of its findings, dedicated to quantifying how much Bitcoin is effectively ‘lost’ and how much exists as UTXO “dust.”
What do you think about Unchained Capital’s data? Let us know in the comments section below!
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