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Amid Bitcoin’s persistent price fluctuations, long-term holders remain steadfast, refusing to cash in on substantial gains from earlier investments.
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Recent insights indicate that investors who bought Bitcoin during the 2020-2021 period are maintaining their positions, eagerly anticipating even higher valuations.
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“The majority of investors who entered between 2020 and 2022 are still holding,” stated a recent report by onchain analytics firm Glassnode.
This article examines the steadfastness of Bitcoin holders from 2020-2022 as they weather market volatility, shedding light on current investor trends.
Long-term Bitcoin Holders Show Unwavering Resolve
According to data from Glassnode, Bitcoin investors who purchased their assets between 2020 and 2022 are maintaining their holdings in the face of significant price increases. Despite the cryptocurrency soaring to nearly $110,000, many are still waiting for even higher profits before selling. This group, known for their historical buying range between approximately $3,600 and a peak of $69,000, has shown remarkable resilience.
Glassnode’s report highlights a crucial statistic: while the share of wealth held by investors who bought Bitcoin three to five years ago has decreased slightly since its peak, it remains at historically elevated levels. This indicates that a significant portion of these investors are confident in Bitcoin’s long-term potential, choosing to hold rather than liquidate their assets.
Analyzing the HODL Waves Data
The Realized Cap HODL Waves metric offers valuable insights into investor behavior. This metric categorizes Bitcoin’s supply based on when each coin last moved, allowing Glassnode to differentiate between recent and long-term holders effectively. The data suggests that, unlike the current cohort of investors who are still holding, more than two-thirds of those who purchased Bitcoin 5-7 years ago exited their positions during prior market peaks. This observable behavior underscores the differing strategies and confidence levels across investor generations.
Short-Term Holders Display Different Trends
While long-term holders are largely unmoved, the landscape among short-term holders (STHs) tells a different story. These investors, characterized by their rapid buying and selling behavior, demonstrate much higher sensitivity to Bitcoin’s price volatility. Cointelegraph notes that recent panic selling episodes have emerged when Bitcoin reached new highs only to retract significantly.
Glassnode’s latest insights reveal that STH participation remains below levels seen during previous market cycles, with their current share at around 40% of Bitcoin’s network wealth—down from nearly 50% earlier in 2025. This data paints a picture of a more tempered and distributed bull market without the speculative frenzy typically observed at major market peaks.
Understanding Market Dynamics and Investor Sentiment
The divergence in behaviors between long-term and short-term holders is critical for understanding the current cryptocurrency landscape. Long-term holders appear to be banking on sustained growth and are less inclined to react emotionally to short-term price swings. Conversely, short-term holders may continue to react to market volatility, potentially leading to increased fluctuations in Bitcoin’s price. This behavior may contribute to a less pronounced cycle of highs and lows seen in previous years.
Conclusion
The ongoing trend of long-term Bitcoin holders maintaining their assets indicates a strong belief in the cryptocurrency’s future potential. With many in this group still waiting for optimal selling conditions, their reluctance contrasts sharply with the more reactive approaches of short-term investors. Ultimately, this divide provides valuable insights into investor sentiment and market dynamics, shaping the strategies for both current and prospective cryptocurrency investors. The future of Bitcoin remains closely tied to these evolving behaviors as market conditions continue to change.
