• Bitcoin’s HODL Waves indicator shows that the percentage of unspent transaction outputs (UTXO) older than five years has increased by 17% in the past six months.
• This indicates aging of unspent outputs, a sign of some investors maintaining their coin stash during the market swoon.
• Joe Burnett, head analyst at Blockware Solutions, called the aging of UTXOs a bullish development.
The evidence continues to mount that some investors held onto their bitcoin (BTC) stash during the bear market of the past few months. According to the HODL Waves indicator created by Unchain Capital and tracked by Glassnode, the percentage of unspent transaction outputs (UTXOs) older than five years has surged 17% in the past six months. This data strongly suggests that some investors stayed the course during the bear market and did not sell their coins.
UTXOs are the amounts of cryptocurrency an individual has after executing a transaction. Every BTC transaction creates a UTXO, and its age indicates when the BTC was first included in a block and when it was last moved. The latest rise in the percentage of UTXOs older than five years indicates aging of unspent outputs, indicating that some investors maintained their coin stash during the market swoon.
Joe Burnett, head analyst at Blockware Solutions, commented on the aging of UTXOs, calling it a bullish development. He noted that the data does not necessarily mean that the investors who maintained their coin stash during the bear market are now actively trading their coins, but rather that they kept them and have not sold them yet.
The data from the HODL Waves indicator also suggests that the aging of UTXOs could indicate increased investor confidence in bitcoin. If investors are willing to keep their coins for a longer period of time, it could be an indication that they have faith in the long-term potential of the cryptocurrency and are not just trying to make a quick profit.
Overall, the data from the HODL Waves indicator is a positive sign for the future of bitcoin. It indicates that investors are showing faith in the long-term potential of the cryptocurrency and that they are not just trying to make a quick profit. The bullish sentiment could help push the price of bitcoin higher in the coming months, as investors continue to HODL their coins.