The data shows that holders of Bitcoin (BTC) are pushing out the speculators in a sign that the cryptocurrency’s bullish rally is “just starting”.

Part of the bitcoin asset management grayscale report released this month is the very bullish divergence on the Hodler and Speculators (HSI) index.

In the gray scale, there is “a structure similar to that of early 2016”.
HSI measures Bitcoin activity from wallets to gain insight into how network members are using BTC and, as a result, market sentiment.

Data collected from Coin Metrics analysis sources shows that the coins that have not moved within one to three years are “Hodler” coins. “Speculation” coins are coins that have moved at some point in the past 90 days.

The resulting comparison shows that, as of August, the speculative coins disappeared while the Hodler coin numbers were high.

Author Phil Bonello commented: “This chart looks promising for Bitcoin as the number of holders in the market is increasing compared to the small number of speculators.”

“Note the same structure as in early 2016.”

As Cointelegraph reported, analysts have already stated that the current state of Bitcoin is faltering in 2016, nearly 18 months before the peak of $ 20,000.

As a number of technical indicators are flashing green, the bullish potential has not gone unnoticed by many.

Charles Edwards, founder of another Capriol asset manager, added of HSI on Twitter: “The percentage of ‘Bitcoin holders’ ahead and ‘speculators’ is another good indication that the bull run is just beginning.”

One-year sleep BTC broke the record
Meanwhile, the grayscale report provides additional insight into decision strength for Bitcoin investors in 2020.

Despite very different price movements over the past twelve months, there is a strong desire to hold BTC as an investment rather than trading it or selling it at any price, all the way to an annual high of $ 12,000.

“It’s also worth noting that the Bitcoin chain shows that there has been no higher level of bitcoin ownership in over a year,” notes Bonello.

“This account indicates a strong belief in Bitcoin by the existing investor base. While this is a supply side account, it also shows the demand for Bitcoin to be used as a store of value – rather than trading, it appears that investors are interested in owning Bitcoin despite the volatility.

Publication of the value creation proposal continues this month when MicroStrategy, which bought more than 21,000 BTC in mid-August, confirmed that it raised its shares to the equivalent of $ 400 million.

Source: CoinTelegraph