Bitcoin Powerplay: HODLers From 2017 Keep Their Coins

Amid the dramatic rise and decline of Bitcoin, there are those who refuse to sell. People who purchased Bitcoin in 2017 hold theirs at a trebled value at present. Yet, they refuse to sell their stock. This stance of a group of ‘HODLers’ sends folks wondering why?

The statistics from Bitcoins Financial services firm, Unchained Capital show that 2017 buyers are in control of an increasingly large number of Bitcoins and are clearly nowhere near liquifying their assets.

The Hodlers

They are the holders. In one instance of a group babbling on a social media page, one holder, in an inebriated state expresses his stance in a typo-ridden rant about ‘hodl’ing onto his bitcoins. His misspelling led the word to become a Bitcoin lingo.

These HODLers from 3-5 years back are identified as a strong group retaining a major chunk of the Bitcoin supply. More than the net worth of assets such large groups are seen to wield extensive power in manipulating the price variations in the cryptocurrency.

March 2020 witnessed a cross-asset crash when BTC/USD fell to lows of $3,600. Since the percentage of the BTC supply that last moved between February 2016 and February 2018 has increased from 5.57% to 13.38%.

Expressly, the price during 2019, much of 2020, and all of 2021 has not made 2017 BTC investors sell after surviving the lull market. This stands in stark contrast with the five-year to seven-year and seven-year to ten-year hodl crowd that has been reducing its presence over the past year, some, even at a modest profit.

Also Read: 5% of Corporate CFOs Intend to Buy Bitcoin in 2021 According to Survey Reports

The Whales

People holding huge volumes of Bitcoins are often termed whales in the crypto-community. It is known that about 40% of the entire Bitcoin supply is owned by 1000 people. These people are becoming a constant worry for other investors.

The whales are a society. They have known each other for years and often plan their moves in coordination. With the load of the cryptocurrency they have on them, any visible move reflects on the Bitcoin prices. For instance, if one sells a portion of their holdings, it plummets the prices of Bitcoin. As Bitcoin is a digital currency and not a security, there is no regulation against a group planning to buy in sufficiently high numbers to push the price high and then cash out within minutes.

The owners of Bitcoins from 3-5 years back exhibit a definitive behavior by not cashing in their coins when most holders are doing so. Even if, in portions of their respective holdings. The implications of such behavior are setting off alarms in the crypto market.