After Bitcoin dropped on the 21st of January, the investors dropped back to a previously used market strategy that supposedly triggered BTC’s bull run; hodling. As reported previously, dormant coins undergoing movement during the massive $42,000 high became dormant again, and hodlers settled back to navigate through the bearish storm.
However, the rally which started back in December 2020 might have manifested due to a different sentiment of the hodlers.
Hodling and Hodlers: Playing Bitcoin differently
Now, the common narrative over the past few months is that Bitcoin is rising on the charts due to institutional involvement and the retail market hodling Bitcoin. While both the narratives hold strength on their own accord, the role of institutions might have been more in terms of taking Bitcoin away from the hodlers.
According to the recent insights reported by OKEx, Bitcoin had gone parabolic in Dec-2020 after institutional-size transactions increased during Q3 2020. According to the report, on-chain transactions for over 1,000 BTC went from 5% towards the end of June 2020, to 45% in September 2020.
The collective belief was that both institutions and long-term hodlers were accumulating together. However, between September-December 2020, the average age of transacted coins remained constant. If Bitcoin whales had held on to their accumulated assets, the average age should have dropped in the charts (depicted by the pink line)…