HODLing Is Making a Comeback

TLDR

• Bitcoin is being HODLed harder than ever before.
• Over 170,000 BTC has been pulled off the market and into cold storage.
• Blackrock has increased its holding to half a million BTC.

If you’ve been dipping your toes into the crypto world, you’ve probably heard a term thrown around quite a bit lately — HODLing. 

It’s a quirky way of saying “hold on for dear life” and refers to sitting tight with your Bitcoin instead of selling it off at the first sign of market volatility. HODLing isn’t just a meme. It’s the original crypto strategy — and it’s making a serious comeback. 

Why Bitcoin Holders Are Sitting Tight 

Here’s the good news (spoiler alert): Bitcoin investors are keeping their cool and doubling down on their long-term bets. Exchange reserves are at historic lows, and institutions like BlackRock are amassing mind-blowing amounts of Bitcoin. 

Bitcoin reserves on exchanges — the amount available for trading — have dropped to their lowest levels in years. That’s a clear sign people aren’t looking to sell anytime soon. Data from CryptoQuant shows that more than 171,000 Bitcoin have been pulled out of exchanges in recent months. 

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Why is this happening? Most of it’s ending up in cold storage. Think about it like moving your most prized possession into a vault instead of leaving it out in the open for anyone to grab. 

The broader trend? Shrinking liquidity. Way back in October 2021, exchanges held around 3.2 million Bitcoin. Today, that number has fallen to just 2.46 million. For reference, Bitcoin’s current circulating supply is roughly 19.79 million. That’s a slim margin when you consider how much of it is being HODLed. 

And here’s another nugget for you to chew on — Bitcoin’s illiquid supply (held by long-term HODLers) has climbed to a record 14.8 million Bitcoin. (Note: All of the news outlets reporting on this use a product called Glassnode, which is a premium service. We highly recommend it if you want to personally track these kinds of metrics. However, we ain’t paying for it.)

That’s 75% of all the Bitcoin. Turns out, HODLing isn’t just trendy — it’s setting the bar for how people engage with Bitcoin. 

Institutional Players

It’s not just your average crypto enthusiast eyeing the long game. Institutions are now major players. BlackRock’s Bitcoin ETF (aka IBIT) is accumulating hard. Less than a year since launching, IBIT has racked up over 500,000 Bitcoin in assets under management. When you zoom out, that’s a jaw-dropping 2.38% of Bitcoin’s 21 million supply locked up in a single entity.

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For context, BlackRock’s net inflows were so massive this year that they pushed Bitcoin to new heights, reaching an eye-watering $95,321 per coin. Larry Fink, BlackRock’s CEO, even called IBIT “the fastest-growing ETF in the history of ETFs.” That’s big talk coming from the world’s largest asset manager. 

Analysts predict even bigger things for the ETF, with estimates that it could hit 1 million Bitcoin under management in the not-too-distant future. Compare that with U.S. proposals advocating for a strategic Bitcoin reserve of 1 million coins, forming about 5% of Bitcoin’s total supply. Whether it’s governments or hedge funds, everyone wants a piece of the pie. 

What This Means for New Crypto Users 

If you’re just starting out, all this talk of shrinking liquidity and rising institutional ownership might feel overwhelming. But here’s where it gets interesting and potentially beneficial for someone in your shoes. 

Increasing Confidence in Bitcoin’s Value 

When investors move their Bitcoin off exchanges and major players like BlackRock pile in, it sends a strong signal that Bitcoin is being seen as a long-term store of value. Sure, it’s still volatile, but HODLing suggests growing confidence in its resilience over time. 

Limited Supply = Rising Prices 

Bitcoin’s scarcity is built into its DNA — there will only ever be 21 million coins. When exchange reserves drop, available supply shrinks, potentially driving up demand and, consequently, price. It’s basic economics, and it’s working in Bitcoin’s favor right now. If you’re holding on to some Bitcoin already, keep an eye on those trends. 

ETFs Open the Door to New Investors 

BlackRock and other ETFs are making Bitcoin more accessible to traditional investors. For you, this could mean more stability in the market over time and increased legitimacy for the crypto space. That’s particularly good news if you’re planning to HODL your Bitcoin for years to come. 

A Safer Playing Field for Beginners 

While we’re all about education and taking calculated risks, the rapid rise of Bitcoin’s institutional adoption — coupled with its emphasis on security (cold storage, anyone?) — creates a more robust ecosystem for new entrants. Think of it as a crypto world with training wheels. You’re stepping into a market with more safeguards and clearer trends to follow. 

HODLing Tips for Beginners 

Feeling inspired to HODL like a pro? Here are some tips to help you ride the crypto wave with confidence. 

• Use Cold Storage: If you’re serious about keeping your Bitcoin safe, consider moving it to a hardware wallet. It’s like burying treasure in your backyard, but better. 
• Stay Educated: Crypto moves quickly. Keep learning about market trends, regulations, and other factors that can impact your holdings. 
• Play the Long Game: Think about why you’re investing in Bitcoin and set realistic expectations for your financial goals. The HODL strategy isn’t about quick gains — it’s about building long-term wealth. 
• Diversify: Yes, Bitcoin is the OG, but don’t put all your eggs in one basket. Experiment with altcoins or other investments to spread out your risk.