Bitcoin (BTC) hodlers are beating out speculators in a sign that the cryptocurrency’s bull run is “just beginning,” data suggests.
Part of asset manager Grayscale’s Valuing Bitcoin report issued this month, the Hodler vs. Speculator Index (HSI) is showing highly bullish divergence.
Grayscale notes “similar structure to early 2016”
HSI measures Bitcoin activity from wallets in order to give an impression of how network participants are using BTC — and market sentiment as a result.
The data, compiled from on-chain analytics resource Coin Metrics, labels coins which have not moved in one to three years as “hodler” coins. “Speculator” coins are those which have moved at some point in the past 90 days.
The resulting comparison shows that, as of August, speculator coins were disappearing, while hodler coin numbers were spiking.
“This chart looks potentially promising for Bitcoin, as there are a growing number of Holders relative to a small number of Speculators in the market,” author Phil Bonello