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Bitcoin Holders Stand Firm: Less Than 10% Willing to Sell

Holding Bitcoin Long Term

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Recent on-chain data reveals that fewer than 10% of Bitcoin holders are willing to sell their coins as of October 2024, a dramatic decline from 26% in 2021 and 64% back in 2013. This significant drop reflects a growing mindset shift: Bitcoin investors are looking beyond short-term fluctuations and focusing on long-term value. 

What’s striking is that both long-term holders—those who have held their Bitcoin for over six months—and short-term holders—those who acquired their BTC within 155 days—are unwilling to sell despite market volatility. This trend emerges despite Bitcoin’s cyclical nature. 

For example: 

  • December 2022: Bitcoin’s price dropped below $17,000, marking a steep correction from its March 2022 peak of over $37,000. 
  • December 2023: Just one year later, Bitcoin surged to $39,000, representing a 100% gain within 12 months. 
  • March 2024: Bitcoin reached its all-time high of $70,000, driven by renewed institutional interest and market momentum. 
  • October 2024: Although Bitcoin retraced to around $60,000, it still boasts an impressive 50% year-to-date return, underscoring the growing trend of long-term investment behavior. 

This holding behavior suggests that more Bitcoin holders are confident about the cryptocurrency’s long-term potential as a store of value, even during downturns. 

Institutional Investors and Spot Bitcoin ETFs Fueling the Shift 

One key driver of this holding trend is the increasing involvement of institutional investors. The approval of spot Bitcoin ETFs in the United States in early 2024 has given institutions an easy avenue to acquire and hold Bitcoin. 

According to Soso Value: 

  • Bitcoin ETF issuers in the U.S. now manage over $60 billion in Bitcoin. 
  • BlackRock alone controls around $22 billion of user assets, signaling strong institutional confidence in Bitcoin’s future. 
  • Grayscale—which initially offered exposure through its Grayscale Bitcoin Trust (GBTC)—has seen $20 billion in outflows as investors switch to spot ETFs, which are more transparent investment vehicles. 
  • MicroStrategy: As a business intelligence firm turned Bitcoin whale, MicroStrategy continues to expand its holdings, accumulating over 250,000 BTC. The company has cemented itself as both a corporate Bitcoin pioneer and a de facto institutional investor, with CEO Michael Saylor emphasizing Bitcoin’s role as a long-term store of value. 

The trend has also been noted by Adam Back, CEO of Blockstream, who pointed out the scarcity of long-term options for Bitcoin. He observes that traders are reluctant to sell call options because they expect Bitcoin’s price to rise, reinforcing the belief that Bitcoin’s value will appreciate over time. 

The Impact of Long-Term Holding on Bitcoin’s Price and Market Dynamics 

The trend of more people holding their Bitcoin (BTC) for longer periods can have a profound impact on its price by influencing supply dynamics, volatility, and long-term market performance. Here’s a breakdown of how this trend could affect BTC prices:

1. Reduced Supply on the Market Creates Upward Pressure on Prices

  • Limited Availability: As more investors hold BTC for the long term, fewer coins are available on exchanges for trading. This creates a supply shortage, especially during periods of rising demand. 
  • Supply-Demand Imbalance: If demand for Bitcoin rises (e.g., driven by institutions, ETFs, or retail investors) but the available supply remains limited, prices could increase in the short term.

2. Lower Market Volatility Promotes Price Stability

  • Less Panic Selling: Long-term holders are less likely to sell during downturns, which dampens extreme price drops. Fewer sharp sell-offs mean more consistent price performance over time. 
  • Confidence Boost: More stable prices encourage new investors to enter the market, creating a positive feedback loop: as prices stabilize, more people are likely to hold, further reducing volatility.

3. Boom-and-Bust Cycles May Moderate Over Time

  • Smoother Bull Markets: When more holders keep their BTC even during price surges, it can slow down extreme spikes—since fewer people are cashing out during rallies.

4. Increased Demand Could Spark Sudden Price Surges (Supply Shock)

  • Supply Shock Risk: If a sudden surge in demand occurs (e.g., from institutions buying large amounts through spot Bitcoin ETFs), the limited circulating supply due to widespread holding could amplify price increases. 
  • FOMO Effect: A supply shock often triggers fear of missing out (FOMO), where retail investors rush to buy, further increasing prices.

5. Strengthens Bitcoin’s Role as a Store of Value

  • Scarcity Narrative: Long-term holding reinforces Bitcoin’s scarcity narrative—with only 21 million BTC ever to exist. As more investors hold with the expectation of future price appreciation, the asset becomes more attractive as a store of value (similar to gold). 
  • Institutional Confidence: The trend of holding strengthens Bitcoin’s image as a long-term investment, encouraging further institutional involvement and making BTC less speculative over time. 
Crypto IRAs: The Ideal Long-Term Investment Tool for Bitcoin 

The growing trend of holding Bitcoin aligns perfectly with the Crypto IRA investment model. Crypto IRAs offer a tax-advantaged way for individuals to invest in Bitcoin and other cryptocurrencies for the long term, making them an excellent tool for those adopting the “HODL” strategy. 

Benefits of Crypto IRAs 
  1. Tax Advantages: Similar to regular IRAs, Crypto IRAs allow investors to defer taxes on their gains until they withdraw funds during retirement. 
  2. Long-Term Focus: Given that IRA accounts are designed for retirement, they align naturally with Bitcoin’s long-term value proposition and reduce the temptation to sell during market volatility. 
  3. Diversification with Scarce Assets: Holding Bitcoin in an IRA provides portfolio diversification with an asset that is both deflationary and increasingly scarce, protecting against inflation and traditional market risks. 
  4. Institutional-Grade Security: Crypto IRAs like BitcoinIRA¹ partner with custodians that offer high-grade security to protect Bitcoin holdings from cyber risks. 

Given the trend toward long-term holding, Crypto IRAs present a perfect vehicle for investors who believe in Bitcoin’s future but prefer a tax-efficient, hands-off strategy. 

Choosing the Best Crypto IRA Provider  

If a Crypto IRA aligns with your goals, consider factors like the provider’s reputation, investment options, security measures, and customer support.    

Among the options available, BitcoinIRA emerges as an outstanding choice within the cryptocurrency landscape. Here’s why BitcoinIRA excels in meeting the most critical requirements:    

  1. Extraordinary Reputation: BitcoinIRA garners accolades and recognition across various analyses, solidifying its status as the foremost Bitcoin IRA provider. Notably, esteemed experts laud BitcoinIRA for its pioneering role as the first Bitcoin IRA platform. Moreover, its collaborations with prominent financial media outlets underscore its credibility and reliability.   
  2. Unwavering Security²: By entrusting most client assets to BitGo—the world’s premier Bitcoin transaction processor—BitcoinIRA fortifies its security measures. Robust features such as multi-signature digital wallets², secure custody solutions, and industry leading insurance² provide unparalleled protection for your assets.  
  3. Seamless User Experience: Access to live support from seasoned Crypto IRA specialists is integral to BitcoinIRA’s commitment to empowering investors to seize control of their financial futures. Whether you’re initiating your journey or seeking guidance on optimizing your portfolio, BitcoinIRA ensures an exceptional user experience.  
  4. Extensive Diversification: BitcoinIRA offers an expansive selection of over 60 cryptocurrencies. This diverse array of digital assets empowers you to tailor your self-directed IRA to align with your investment objectives and risk tolerance. 
Conclusion: Holding Bitcoin for the Long Haul 

The data speaks for itself: Bitcoin holders are increasingly unwilling to sell, reflecting a shift in sentiment toward Bitcoin as a long-term store of value. Institutional involvement and the launch of spot Bitcoin ETFs have added further credibility to this narrative, encouraging more investors to HODL their coins. 

For those seeking to align their Bitcoin investments with long-term financial goals, Crypto IRAs offer the ideal solution. With tax advantages, institutional-grade security, and a focus on long-term growth, Crypto IRAs empower investors to stay the course and benefit from Bitcoin’s potential over the coming decades. 

As Bitcoin continues to mature and adoption grows, it’s becoming increasingly clear that holding for the long term—whether through traditional wallets or Crypto IRAs—may be the most prudent strategy. 

Don’t miss out on the opportunity to grow your Bitcoin investment tax-efficiently. Open a BitcoinIRA account today and secure your financial future with a long-term crypto strategy. Whether you’re building wealth for retirement or diversifying your portfolio, a BitcoinIRA account offers the perfect balance of security, tax benefits, and growth potential. 

 

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  1. Bitcoin IRA is a platform that connects consumers to qualified custodians, digital wallets and cryptocurrency exchanges. The company is not a custodian, is not a digital wallet and is not an exchange. The information provided in this article is for educational purposes only. We encourage you to consult an adviser or professional to determine whether Bitcoin IRA makes sense for you.

  2. Security, storage, wallet providers, and insurance may vary based on asset chosen and custody solution available.
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