• Bitcoin recently hit $30,000 and led to an increase in the practice of “hodling”.
• A Bank of America report indicates that investors are transferring tokens from exchange wallets to their personal wallets in order to hold them.
• Bitcoin is becoming a safe haven for many people due to increasing inflation rates and Federal Reserve interest rate hikes.
Bitcoin Breaks $30K
Bitcoin recently surged past the $30,000 mark for the first time in 11 months, spurring increased activity among investors. The currency’s remarkable growth has led many investors to practice „hodling,“ or holding their digital assets in one’s wallet and refusing to sell them despite market conditions.
Bank of America Reports on Hodling Trend
Bank of America published a report that revealed more investors are transferring tokens from exchange wallets to personal wallets with the intention of hodling them. This suggests a decrease in sell pressure as more trust is being given back towards cryptocurrencies after last year’s devastating blow.
Crypto Becoming a Safe Haven
Hong Fang, president of digital currency exchange OKX, commented on how bitcoin is becoming a safe haven for issues related to inflation and interest rate hikes by the Federal Reserve. He argued that even though these challenges remain, bitcoin still offers much potential which has been confirmed through its incredible performance this year.
Gaining Trust After Last Year’s Debacle
The dismal performance of cryptocurrencies throughout 2022 saw prices fall drastically from their all-time highs – with bitcoin dropping from around $68K to mid-$16K range – leading many investors to sell off their digital assets in fear of further losses. However, it appears that trust is slowly being regained amongst cryptocurrency users as hodling becomes more common amongst bitcoin owners.
Conclusion
This article highlights how bitcoin has performed exceptionally well this year with its recent surge above $30K leading many invesotrs to trust cryptocurrencies once again and put faith into hodling rather than selling off their assets regardless of market conditions.