Part of asset manager Grayscale’s Valuing Bitcoin statement issued this month, the Hodler vs. Speculator Index (HSI), is displaying a highly bullish difference.
Grayscale notes a “comparable structure to early 2016.”
HSI estimates Bitcoin activity from wallets to give an impression of how network participants use BTC — and market viewpoint.
The data, collected from on-chain analytics resource Coin Metrics, mark coins that have not moved in one to three years as “holder” coins. “Speculator” coins are those who have moved at some period in the previous 90 days.
The resulting measurement shows that, as of August, speculator coins were sinking, while holder coin numbers were spiking.
Author Phil Bonello commented that the chart looks conceivably promising for Bitcoin, as there is an increasing number of Holders related to a small number of Speculators in the market.
Analysts have already discussed that Bitcoin’s current state repeats 2016, approximately 18 months before its all-time highs of $20,000.
With a float of technical indicators all flashing green, the bullish potential has not gone unrecognized by many.
Charles Edwards, the founder of fellow asset manager Capriole, added on Twitter about HSI Percent of Bitcoin’ Holders’ peaking and ‘Speculators’ bottoming, a tremendous extra indicator that the Bull run is just beginning.
1-year dormant BTC beats the record
The Grayscale report while delivers further insights into the power of Bitcoin investor resolve in 2020.
Notwithstanding highly varied price action over the past year, there is a strong desire to keep BTC as an investment and not trade or sell it at any price up to the current yearly high of $12,000.
Bonello remarks that it’s also worth stating that the Bitcoin blockchain shows that there has never been a higher Bitcoin level owned for more than one year.
