Search on TFTC
Issue #452: HODLing intensifies

Issue #452: HODLing intensifies

Apr 1, 2019
Marty's Ƀent

Issue #452: HODLing intensifies

What you are looking at is a couple of screenshots of a gif from a tweet I took this morning. Check out the gif when you get a chance because it is an incredibly fascinating visual that tracks the UTXO age distribution from the December 2017 price height through March of this year. It seems as though we're back in an accumulation phase with the percentage of UTXO's being held in some form of storage for more than one year has grown to 57% after hitting a low of 41% in April of 2018. This signals to me that many who sold into the hype towards the end of 2017 are back to holding, waiting for another run to shave some more profits off the top. Joining the ranks of these seasoned traders who know how to time the market are those stubborn bastards who refuse to dump Bitcoin despite only ever losing money buying it.

We'll never be able to know the underlying drivers of this particular metric with 100% certainty, but we can be certain that this is a good sign for the health of the Bitcoin Network. Despite the free-fall from the peak of $20k BTC, more and more people are deciding to hold bitcoin for at least more than a year. While one year isn't considered a very long-term time horizon, I think it is a glowing sign of confidence that a majority of the UTXOs within the network haven't moved in the last 12 months. Especially during a phase in Bitcoin's lifecycle in which it makes more sense as a savings vehicle than a widely used medium of exchange.

Beyond this, the whole notion of being able to visualize the emotions of the market via UTXO age distributions is utterly fascinating. If one were able to remove himself from the noise of the news, social media, and social signaling and simply follow these age distributions flows, they may be able to trade these markets in relative peace and retain their sanity. At least this would have probably worked up to this point. Something, something past performance is not indicative of future returns.

Final thought...

I'll spare you the corny April fools joke. You can thank me now.


Current Block Height

Current Mempool Size

Current Difficulty