Bitcoin HODLers are holding on even as transaction volumes dip, betting on the price to rise further

• The overall transaction volumes for Bitcoin have remained at a low seen only a few times in the last five years.
• The number of transactions remained between 175,000 and 200,000 in the past week, despite a price surge.
• However, a Bitcoin bull run is still expected, with HODLers likely holding on to see the peak values.

Bitcoin’s resurgence towards the trillion-dollar market capitalisation has been widely reported over the past month. The cryptocurrency’s price surged beyond $50,000 this week, raising hopes of crossing the $65,000 threshold seen earlier this year.

However, a new report from blockchain analytics firm Glassnode pointed out that while Bitcoin’s prices may have surged, the number of transactions has not grown as expected.

Glassnode’s report suggests that HODLers, a term used to describe people who hold cryptocurrencies, are holding on to their Bitcoin — perhaps waiting for the market to reach its peak.

HODLers hold on

The analytics firm noted that the number of daily Bitcoin transactions remained between 175,000 to 200,000, which is historically lower than what’s seen during a bull market.


The report also said that such numbers were seen during the 2016-17 bull market and the 2018-19 bear market, which could be an indicator that Bitcoin is far from another bull run, despite what many have suggested. After all, the industry didn’t have quite as many users in 2016-17 as it does today.


An earlier analysis by the same firm spotted a ‘golden cross’ in the average value of Bitcoin earlier this month, which occurs when the short-term average value of Bitcoin crosses the long-term average and suggests that a bull run may be imminent.


Bitcoin prices on the rise
The prices of Bitcoin started rising earlier this year, topping $40,000 on August 5. The world’s most valuable crypto token has been on the rise since then. According to Coinmarketcap, the prices have been growing since July 26, running from around $38,000 to $48,000 today. It topped the $50,000 value on August 23.

Despite a significant discrepancy between rising prices and low on-chain activity, the overall supply dynamics have remained quite bullish, Glassnode reported. This week, the Bitcoin supply held by long-term holders has reached an all-time high of 12.69 million BTC, surpassing the previous record posted in October 2020.

In early August, Glassnode reported that Bitcoin’s 50% downside correction in May might not be as alarming as it was in 2018 due to strong “HODLling behavior.”

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