Bitcoin to Hit $130K? HODL Frenzy Predicted
Bitcoin’s price surge could lead to a “HODL frenzy,” according to Bitwise CEO Hunter Horsley. He predicts that once Bitcoin surpasses the $130,000 to $150,000 mark, selling pressure will significantly decrease. This is because long-term holders, who acquired Bitcoin at much lower prices (average of ~$34,415), will be realizing massive profits (300% or more), making them less likely to sell. Currently, the selling pressure around the $100,000 level is attributed to these long-term holders taking profits after significant gains. Horsley notes the rise of on-chain borrowing and lending as a factor influencing this trend. Bitcoin holders can now use their holdings as collateral for loans, reducing the need to sell their Bitcoin directly. Adding to the bullish sentiment, the relatively low supply of Bitcoin from miners (around 450 BTC per day) further supports price increases. While institutional demand remains strong, the prediction isn’t without caveats. Latecomers who buy near significant milestones might still take profits quickly, and the risk of forced selling due to price drops in loan-backed scenarios exists. Macroeconomic factors and regulatory news could also create volatility. Analysts cite a convergence of strong institutional demand and dwindling supply as key drivers for the potential price surge to $130,000.
(Source: https://bitcoinist.com/130k-bitcoin-will-trigger-a-hodl-frenzy-ceo-says/)
