Despite the extended correction, most Bitcoin (BTC) investors appear to be betting on the asset rallying in the future, as the cryptocurrency continues to consolidate around the $20,000 level.
As a result, with macroeconomic factors outweighing the general crypto market, investors are opting for the ‘HODL’ investment strategy. According to Glassnode data, as of September 29, the amount of Bitcoin under HODL had reached a five-year high of 7,509,524.362 BTC, which is equivalent to $341.55 billion.
It is worth noting that long-term holders should hold on to the asset because selling will result in losses. In this case, Glassnode data shows that long-term Bitcoin holders are selling the asset at a 42% loss.
Bitcoin’s long-term prospects continue to inspire confidence.
The data may be interrupted if Bitcoin holders maintain their long-term investment conviction. Most investors believe that factors such as increased adoption and declining supply will spark a Bitcoin rally.
Furthermore, the amount under HOLD may indicate that Bitcoin’s status as a store of value and a hedge against inflation is gaining traction. As a result, Bitcoin appears to be increasing in value in the eyes of some investors, and any price drops make it a viable investment.
Furthermore, the low price presents an ideal opportunity to accumulate the asset in the aftermath of the increased devaluation of most global fiat currencies. Indeed, with the pound sterling’s value plummeting, data shows that investors are more likely to prefer Bitcoin, as evidenced by the GBP/BTC trading volume.
Furthermore, the data indicates that investors who are not swayed by emotions to sell the asset during turbulent times are resilient and mature.
Bitcoin has the capacity to rise to the top in the face of massive inflation.
At the same time, market analysts predict that assets such as Bitcoin would rise in value as central banks deal with present inflation.
According to Finbold, billionaire investor Stanley Druckenmiller believes that if investors lose faith in central banks’ tightening policies, cryptocurrency will increase in the next years.
Meanwhile, Bitcoin looks to have stabilized over the $19,000 barrier, trading around $19,500 at press time, up more than 3% in the past 24 hours.
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