Study: Investors held positions in Bitcoin over the summer, suggesting stability

24 Sep, 2018
by David Borman
News
Study: Investors held positions in Bitcoin over the summer, suggesting stability

Chainalysis, a blog that analyzes blockchains for valuable data on the growth and evolution of crypto, have released a report on the current state of Bitcoin and how it has changed since December last year. Their findings imply most users are still HODLing and in general the crypto market has somewhat stabilized

The team initially released data in April, at a time when we had just seen the expected correction from the December run up to almost $20,000 BTC. Now they have updated their findings with data up through August, and it looks like things have leveled off. They measure roughly how much of crypto is being used for speculation, how much is being transacted, how much is in long investments, and how much is likely lost or yet-to-be mined.

chart

The results show that the ratios have not changed much since earlier this year. This means that on average, both investors and speculators are still HODLing. Basically, despite the price correction, people aren't going anywhere, crypto is retaining its user base.

Having a larger, unwaivering base is likely making the whole market less volatile. It is harder for one big move to create massive price fluctuations now that there are so many buyers and sellers.

This is a very optimistic finding. It is a strong sign that this industry still has a lot of strength left in it. The next several years should be truly exciting!

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Read more about:Bitcoin (BTC)

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