Community Trust ScoreVerified
- Bitcoin Diamond Hand Attitude
- Never Sell Bitcoin
- BTC Holder groups who have it for 12-18 months
- Never sell even if BTC price crashes
Diamond hands is a slang term, which is used to point to an investor who refrains from selling an investment irrespective of the downturns or losses. This also points to a stubborn investor who will not sell. These are the investors who will never sell or abandon their investment even if they know that it will lose its value.
The Bitcoin Diamond hand attitude is very popular with high-risk assets like BTC.
For instance, Michael Saylor, the MicroStrategy CEO told Bloomberg in an interview published Thursday, “Never. No. We’re not sellers.”
Michael Strategy has in the past given several explanations for why he holds Bitcoin like: Why he’s always treated the company with a long-time horizon? Why the asset inflation rate is the real inflation rate? How he became convinced that bitcoin is the best treasury asset in the world? Why Michael believes some other companies will follow suit, but better do so quick? Why the intensity of maximalists is actually part of the reason he grew conviction around the asset? Why he would buy every Bitcoin if he could?
The Friday BTC crash has left several retail investors fearful and drove them to a selling spree. Despite several investors like Michael Saylor who are strong believers of BTC have been showing diamond hands.
The distribution of BTC among the different holders in the market is indicated by an On-Chain indicator. It refers to transactions that are recorded and verified on the blockchain.
On-chain transactions provide security and transparency as they can’t be altered once they’re verified and recorded on the blockchain network.
On-chain indicator is a bitcoin on-chain metric which shows whether Bitcoin spent outputs (UTXO’s) are being realized in profit or loss. It’s calculated by dividing realized value by the value at creation (price sold / price paid). SOPR servers as a great short/mid-term indicator.
The metric measures for how many days it has been since it was last moved. These coins are categorized based on its age.
Considering the holder groups who have it for 12-18 months it looks like the recent accumulations are strong and the distribution of long-term holders goes up.
This trend is bullish for the prices of Bitcoin as it shows a large number of holders refuse to sell at the current levels – this even if the price crashes.
However, when coins belonging to short term holders goes up, this just means that some long-term holders have decide to sell. This trend is kind of rude for the price of crypto.
The more the number of diamond hands the more bullish is for the price of BTC and price recovery.
