Investors are using different tactics to manage the ongoing Bitcoin (BTC) price correction amid predictions that it will rebound in the future. In this situation, most Bitcoin investors seem to be adopting the “HODL” investment strategy.
According to Glassnode data, Bitcoin HODLed reached an all-time high for the last five years at 7,495,059.588 BTC on September 21. This is approximately 143.74 billion USD worth of bitcoin held by investors around the world. The last recorded high for five years occurred on October 19, 2020.
The amount in HODL partially reflects that people don’t want to take risks during the current state of high volatility. Investors would rather hold onto their coins than sell them when they expect instability in the markets.
The leading cryptocurrency, Bitcoin, is trying to prevent another collapse below the $20,000 mark as more investors hesitate to sell their holdings. In this case, investors who believe in cryptocurrency for the long term, tend to hold onto their assets in anticipation of a market rally.
Additionally, the low price of Bitcoin has created an opportunity for investors to buy Bitcoin assets cheaper and wait for a possible rally in the future.
Bitcoin likely to rally again
Bloomberg Intelligence senior commodity strategist Mike McGlone recognizes that the current Bitcoin price is selling for an extreme discount. He expects, though, that it will likely rally close to $100,000.
Gareth Soloway, chief market strategist at InTheMoneyStocks.com, and other analysts have predicted that Bitcoin may decline even further, to about $12,000, before regaining its previous strength.
Curiously, if an overwhelming majority of holders are anticipating the price to rise, the volume in HODL might also go up considering that there are projections of Bitcoin recording increased losses.
Disclaimer: The content is not for investment advice. Investing is risky; when you invest, your capital is at risk.
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