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Market Cap $2,547,923,505,067.80
Bitcoin Share 51.68%
24h Market Cap Change $-0.20

To HODL or not? Bitcoin investors should rethink their strategy as…

2min Read

Bitcoin’s illiquid supply equated to more than 78% of BTC’s total circulating supply, indicating a marked rise in HODLing sentiment.

To HODL or not to? Bitcoin investors need to rethink their strategy as...

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  • BTC’s illiquid supply has continuously increased in Q2 2023, revealing an antithetical relationship with price.
  • BTC’s latest pump to 30k caused a dramatic shift in investors’ sentiment.

Bitcoin’s [BTC] sluggish growth over the past month coupled with legal actions against top exchanges, significantly reduced investors’ appetite for trading. As FUD engulfed the market, most long-term investors started to take coins out of exchanges in favor of self-custody.

Is your portfolio green? Check out the Bitcoin Profit Calculator

As per the on-chain analytics firm Glassnode, a fascinating divergence came to light between supply on exchanges (i.e, liquid supply) and supply held in illiquid wallets with no history of spending. While the exchange balance dropped to 2.3 million, the lowest since early 2018, the illiquid supply reached a fresh all-time high of 15.2 million.

, Source: Glassnode

BTC available for trading falls

BTC’s illiquid supply has continuously increased in Q2 2023, as shown below, revealing an inversely proportional relationship with BTC’s price. It was interesting to note that the illiquid supply equated to more than 78% of BTC’s total circulating supply, indicating a marked rise in HODLing sentiment.

Source: Glassnode

This trend could be explained by the fact that Bitcoin was increasingly viewed as a ‘Store of Value’ rather than a speculative asset in intraday trading, lending credence to its long-held narrative of being a safe-haven asset.

Will the sentiment change?

After extended periods of rangebound price movement, BTC breached the $30,000 mark at press time, the first time since mid-April, as per CoinMarketCap. According to blockchain analytics firm Santiment, this caused a dramatic shift in investors’ behavior as BTC whales woke up from slumber to clock their highest transaction count in over three months.

Investor sentiment for the king coin also turned to greed for the first time since May. The market mood has been neutral in recent weeks due to low volatility, which disappointed both bullish and bearish forces.

How much are 1,10,100 BTCs worth today?

Endorsement from the central bank?

The recent admission by Federal Reserve Chair Jerome Powell that BTC and the crypto asset class “appear to have some staying power” spurred the price increase.

Powell made the remarks during a hearing on monetary policy by the House Financial Services Committee. The Chairperson also said, “We do see payment stablecoins as a form of money”.


Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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