BTC/USD Daily Chart
An analyst points out why this next bull run may downplay the previous two cycles. Willy Woo, an on-chain analyst recently noted an increase in HODLing among retail BTC investors. He noted that the “reflexivity” indicator has been surging in recent months. The analyst explained that the indicator reflects BTC investors’ tendency to hold onto their BTC as its price increases. It’s also another way to measure the HODLing activity of retail investors. This he said:
“This [reflexivity] is the tendency of HODLers to hold onto their coins harder as price increases. I had expected reflexivity to increase during the mania phase of BULL markets, but it looks quite constant from the last two cycles… This cycle is interesting; reflexivity is increasing rather than static compared to the last cycles. While we now need more capital investment to get similar % gains in price, the effect of HODLers holding onto coins tighter is magnifying ‘number goes up’ per dollar invested.”
Bitcoin market cap gain per dollar invested or reflexivity. Courtesy: Willy Woo
Image Credit: Willy Woo, Shutterstock
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