Bitcoin Investors Hold Strong Despite 2020-2022 Price Fluctuations

Bitcoin investors who acquired their assets between 2020 and 2022 have shown remarkable resilience, holding onto their investments despite significant price fluctuations and increases. This steadfastness is evident even as Bitcoin's value soared to nearly $110,000, with many investors waiting for even higher profits before considering selling. These investors, who bought Bitcoin within a historical range of approximately $3,600 to $69,000, have demonstrated a strong belief in the cryptocurrency's long-term potential.

According to a recent report by onchain analytics firm, a significant portion of investors who entered the market between 2020 and 2022 are still holding onto their Bitcoin. While the share of wealth held by these investors has decreased slightly from its peak, it remains at historically elevated levels. This indicates that many of these investors are confident in Bitcoin’s future and are choosing to hold rather than liquidate their assets.

The Realized Cap HODL Waves metric provides valuable insights into investor behavior by categorizing Bitcoin’s supply based on when each coin last moved. This allows for a differentiation between recent and long-term holders. The data suggests that, unlike the current cohort of investors who are still holding, more than two-thirds of those who purchased Bitcoin 5-7 years ago exited their positions during prior market peaks. This behavior underscores the differing strategies and confidence levels across investor generations.

While long-term holders remain steadfast, short-term holders (STHs) exhibit different trends. These investors, known for their rapid buying and selling behavior, are more sensitive to Bitcoin’s price volatility. Recent panic selling episodes have emerged when Bitcoin reached new highs only to retract significantly. The latest insights reveal that STH participation remains below levels seen during previous market cycles, with their current share at around 40% of Bitcoin’s network wealth—down from nearly 50% earlier in 2025. This data suggests a more tempered and distributed bull market without the speculative frenzy typically observed at major market peaks.

The divergence in behaviors between long-term and short-term holders is critical for understanding the current cryptocurrency landscape. Long-term holders appear to be banking on sustained growth and are less inclined to react emotionally to short-term price swings. Conversely, short-term holders may continue to react to market volatility, potentially leading to increased fluctuations in Bitcoin’s price. This behavior may contribute to a less pronounced cycle of highs and lows seen in previous years.

The ongoing trend of long-term Bitcoin holders maintaining their assets indicates a strong belief in the cryptocurrency’s future potential. With many in this group still waiting for optimal selling conditions, their reluctance contrasts sharply with the more reactive approaches of short-term investors. Ultimately, this divide provides valuable insights into investor sentiment and market dynamics, shaping the strategies for both current and prospective cryptocurrency investors. The future of Bitcoin remains closely tied to these evolving behaviors as market conditions continue to change.