Bitcoin Investors Hold Strong Despite Price Volatility, Research Shows Minimal Selling at $109K

Bitcoin Investors Hold Tight, Despite $109K Price Surge

Bitcoin (BTC) investors who entered the market between 2020 and 2022 are showing remarkable resilience, holding onto their assets despite major price fluctuations and significant gains, according to new research from on-chain analytics firm Glassnode. The study, shared on April 1 via X, reveals that even at a Bitcoin price of $109,000, many investors have refused to sell, anticipating higher prices down the road.

Glassnode’s findings suggest that investors who bought Bitcoin at a cost basis between $3,600 (the lows of 2020) and the peak price of $69,000 in 2021 are continuing to "hodl," or hold, their assets, undeterred by the market's volatility.

“Although the share of wealth held by investors who bought BTC between 2020 and 2022 has declined by 3 percentage points since its November 2024 peak, it remains at historically elevated levels,” the report notes. This suggests that the majority of these investors are still committed to holding their Bitcoin, despite the significant profits available to them.

The Persistence of Long-Term Holders

The analysis uses Glassnode’s Realized Cap HODL Waves metric to track Bitcoin's supply distribution. This tool splits the BTC supply into sections based on when coins were last moved on-chain, allowing the firm to compare the behaviors of different investor cohorts. According to Glassnode, long-term holders (those who bought Bitcoin 3-5 years ago) have been far less inclined to sell at recent price highs, especially when compared to earlier cohorts.

Interestingly, those who bought Bitcoin between 2015 and 2018, with a much lower cost basis, were quicker to exit their positions when Bitcoin's price peaked in December 2024. The data reveals that over two-thirds of these earlier buyers had already sold by that time.

Bitcoin Realized Cap HODL Waves data. Source: Glassnode

A More Tempered Bull Market

In contrast to past cycles, where speculative behavior among short-term holders (STHs) spiked near cycle tops, the current market is showing more caution. Glassnode points out that short-term holders currently hold around 40% of Bitcoin's network wealth, a figure that peaked at nearly 50% in early 2025. This is significantly lower than previous cycle tops, where short-term holders controlled 70-90% of the market's wealth, indicating a more distributed and less frenzied bull market.

Despite recent record highs and a subsequent 30% pullback in Bitcoin’s price, the absence of panic selling suggests that this cycle may be characterized by a more mature market, with less speculative behavior driving price movements.

Why Investors Are Holding Firm

Bitcoin’s enduring appeal lies in its potential as a store of value and a hedge against inflation, which has become increasingly important as economic uncertainty looms. For many investors who entered the market in 2020 and 2021, the long-term outlook remains far more important than short-term volatility. As a result, they are holding onto their coins in anticipation of even higher prices in the future, despite the tempting profits that current levels would bring.

As Glassnode concludes, “Current STH participation does not suggest a speculative frenzy, but rather points to a more measured, long-term approach to Bitcoin's bull market.”

Looking Ahead to Bitcoin’s Future

With more Bitcoin investors holding their positions during the current market upswing, the question remains: what comes next for the world’s most prominent cryptocurrency? Will Bitcoin continue to see significant price appreciation, or are we witnessing the start of a more gradual, less volatile phase in the market?

For more information on Bitcoin market trends and in-depth analytics, you can check out Glassnode's official research or follow their insights on X.

As Bitcoin evolves, the behavior of both short-term and long-term holders will provide crucial signals on the health and direction of the broader cryptocurrency market. Stay tuned as these dynamics unfold, especially with the growing institutional interest and evolving regulatory landscape.

Bitcoin Realized Cap HODL Waves. Source: Glassnode