The major corrections that hit the crypto market, Bitcoin in particular, don’t seem to deter long-term investors, HODLer, from getting this major crypto out of their hands.
It is known that the number of “old” Bitcoin investors is steadily increasing as the market continues to fall further, according to Glassnode on-chain data.
Based on the data it is revealed that, the number of Bitcoin wallets aged 5-7 years has increased significantly and reached an 8-month high.
As the data also shows, 716,325 Bitcoins are currently just sitting in the wallet without any movement since at least 2015, when BTC was trading at around $300.
The reason behind the increasing number of inactive wallets is related to at least two factors, including the worsening of the Bearish trend in the market and the changing nature of the digital asset market which is turning from speculative to medium term.
As additional on-chain data shows, the number of medium and long-term Bitcoin holders has significantly increased in the chain since 2017. Back in the “ICO era,” the majority of market participants were in it for short-term gains rather than fundamental value from a technology standpoint.
With the further evolution of the industry and institutional adoption, more private investors are starting to use cryptocurrencies as a way to save funds during periods of high inflation or as a risk exposure tool.
While the number of long-term holders is increasing, the incoming mid-term holders have been actively dropping their holdings as the price of the first cryptocurrency has fallen 40%.
At press time, Bitcoin is trading in the $38,000 range, steady at $36k-38k. But as market data shows, the majority of traders currently remain out of the market pending significant moves in the stock market.
Of course, this refers to crypto’s currently closer correlation with the stock market, as both were hit by the Fed’s policies that made the US dollar stronger, while lowering investors’ risk appetite.