- 62% of BTC wallets have not moved in 1 year, according to on-chain data.
- More than half still post profits despite the drop.
- Investors have confidence in cryptocurrencies, adds a report.
Cryptocurrency investors appear to remain confident in Bitcoin in the long term despite the prolonged slowdown in market prices this year.
Recent metrics show that most of the incumbents of Bitcoin (BTC) have not sold or moved their coins for a period of one year. Based on string data of intotheblockwhich were collected by several media62% of wallets have kept their bitcoin for 12 months or more, opting for a commercial strategy popularly known as hodling.
The data could suggest that most investors have preferred to hold on to their currencies for the long term (do hodling) despite the bear market, an optimistic sign that they possibly anticipate an eventual rise in the price of Bitcoin.
This year, Bitcoin has retraced more than 70% from its all-time price high near $70,000 reached in November 2021. Overall, the crypto market has seen major turmoil in recent months amid the aggressive approach of the US Federal Reserve ( FED) to control inflation and the broader complex macroeconomic picture.
Bitcoin has struggled to hold above the $20,000 mark, a key support level, as some of the majors altcoins they have also seen even steeper price corrections in percentage terms.
Despite this scenario, most holders of Bitcoin they have chosen to keep their coins immobile for a year or more. The data also shows that 32% of wallets have not sold for between 1 and 12 months. A lower percentage of 5% have been saving their bitcoin for a span of around 30 days, according to the metrics.
The reason why most investors continue to choose to hold their coins despite the bear market could be due to the profitability of the strategy. According to data of IntoTheBlock, more than half of the wallets currently record profits, even when Bitcoin hovers around $20,300, less than a third of its previous record.
Specifically, the metrics indicate that 51% of BTC addresses are currently in profit, while 39% register losses. The remaining 9% is neither in profit nor in loss. The on-chain data TipRanks match.
Confidence despite the fall
The data appears to be supplemented by a recent report from the digital asset exchange Bitstamp which suggests that investors have not lost confidence in cryptocurrencies despite the price crash. In his latest reportCrypto Press“, which was picked up by Cointelegraphit was revealed that 61% of retail investors consider digital currencies trustworthy.
The percentage has decreased slightly since the first quarter of 2022, when the same study found that 65% of investors were confident in the new asset class. The trend was similar among institutional investors: 67% of respondents considered cryptocurrencies to be trustworthy in Q2 vs. 70% in Q1.
The metric varied between different countries, remaining high among investors in some Latin American countries such as Brazil, Chile and Mexico, where confidence percentages of 77%, 69% and 70%, respectively, were recorded. The conclusions were drawn from a study that surveyed 28,000 retail and institutional investors in 23 countries.
The report’s analysts noted that the data is a good indicator of the “industry resilience“ in difficult moments. They also pointed out that, in several countries, investors are choosing to expand their knowledge and even their positions in cryptocurrencies, despite the so-called “crypto winter“, which, in the long run, could be a bullish sign.
Although trust in cryptocurrencies has slightly decreased in some regions, investors are taking this time to increase their investment or expand their knowledge of cryptocurrencies.
Article by Hannah Estefanía Pérez / DailyBitcoin
Picture of unsplash
WARNING: This is an informative article. DiarioBitcoin is a means of communication, it does not promote, endorse or recommend any investment in particular. It is worth noting that investments in crypto assets are not regulated in some countries. May not be suitable for retail investors as the full amount invested could be lost. Check the laws of your country before investing.