The annual Bitcoin HODL index has surpassed 50% – for the first time of the asset’s history. Cases of using BTC as a safe heaven are becoming more frequent.
BTC remains to be a safe heaven. BTC HODLing continues growing as more coin holders consider the asset as a safe heaven represented by the largest cryptocurrency with the highest market capitalization. As Benjamin Celermajer, index manager at crypto-analytic company Coin Metrics published on his Twitter on Monday, the one-year HODL factor for BTC is at record level exceeding 50%. This rate shows that over half of active BTC supply hasn’t move throughout the year.
The Bitcoin HODL index growth in all significant time frames demonstrates that token holders do not want to spend or sell their BTC. It rather looks like the wallets’ owners prefer keeping their stashes. Actually, last year BeInCrypto reported several cases when Bitcoin whales transferred their assets to “HODL” wallets. As Binance reserach published in November 2019 showed, HODLing remains to be the best strategy for the asset storage.
One-year HODL factor may continue growing if the recent tendency for massive token outflow from exchanges remain. As previously reported, such platforms as BitMEX and Bitfinex saw significant BTC balance lowering since the “Black Thursday”. The tendency for storing is not likely limited to whales only because the number of BTC addresses with at least 0.01 BTC has also increased.
