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Bitcoin has been doing quite well as of late. The currency just hit $30K for the first time in about 11 months, and everyone is on pins and needles about where the world’s number one digital currency will do next.
The Bitcoin Price Hikes Are Leading to More Hodling
The asset is doing so well, in fact, that hodling has become much more prominent in recent weeks. Initially written out to be “holding,” the term was misspelled online as “hodling” and it’s been utilized ever since when talking about holding the asset in one’s wallet and refusing to sell it, no matter what the market conditions may be.
In a new report issued by Bank of America, it appears the practice of “hodling” is getting to be more common. Prior, many people were in the process of selling their digital assets given how poorly 2022 went. It was an embarrassment and a disgrace to see currencies like bitcoin lose more than 70 percent of their value (the asset fell from an all-time high of about $68,000 to the mid-$16K range), and there didn’t seem to be much sense in holding these currencies given how weak the prospects were.
But now, it looks like things are changing. The B of A report says:
Investors transfer tokens from exchange wallets to their personal wallets when they intend to hold them (or HODL), indicating a potential decrease in sell pressure.
It’s become clear that many more investors are gaining their trust of the digital currency world back. They are confident that things can return to normal, and that these assets still have a lot to offer regardless of last year’s pathetic results. Hong Fang – president of the digital currency exchange OKX – said in a recent interview:
Bitcoin is becoming a very clear safe haven for a lot of the issues we’re having right now.
He was commenting on the fact that the Federal Reserve made it known that 2023 will not be a year in which interest rate hikes stop, like so many analysts originally thought. In fact, Fed Chair Jerome Powell recently came out and said that inflation is still a problem in nations like the U.S., and he and his associates will do all they can to fight it (this includes pushing rates up even further).
Staying Strong Regardless of the News
Despite all this, it seems as though bitcoin is developing a thicker skin, and negative news is no longer hurting it the way it did last year. Nathan Batchelor – managing partner at analytics platform Biyond Trader – said:
Bitcoin has stopped reacting to bad news. This is a tell-tale sign of a strong buyers’ market.
In the meantime, other assets are also pumping fast. Ethereum, for example, recently endured its Shapella upgrade and rose to about $1,900 per unit.