Bitcoin speculators hit all-time lows as Grayscale says BTC like 2016

Bitcoin hodlers are beating out speculators in a sign that the cryptocurrency's bull run is "Just beginning," data suggests.

Part of asset manager Grayscale's Valuing Bitcoin report issued this month, the Hodler vs. Speculator Index is showing highly bullish divergence.

HSI measures Bitcoin activity from wallets in order to give an impression of how network participants are using BTC - and market sentiment as a result.

"This chart looks potentially promising for Bitcoin, as there are a growing number of Holders relative to a small number of Speculators in the market," author Phil Bonello commented.

Bitcoin Hodler vs. Speculator Index historical chart.

As Cointelegraph reported, analysts have already argued that the current state of Bitcoin echoes 2016, roughly 18 months before its all-time highs of $20,000.

"Percent of Bitcoin 'Holders' peaking and 'Speculators' bottoming, another great indicator that the Bull run is just beginning," Charles Edwards, founder of fellow asset manager Capriole, added on Twitter about HSI.1-year dormant BTC beats record.

The Grayscale report meanwhile delivers further insights into the strength of Bitcoin investor resolve in 2020.

"It's also worth noting that the Bitcoin blockchain reveals that there has never been a higher level of Bitcoin owned for more than one year," Bonello notes.

"This metric indicates a strong conviction in Bitcoin by its current investor base. While this is a supply-side metric, it also demonstrates the demand for Bitcoin's use case as a store of value - rather than trading, it appears investors are interested in holding Bitcoin despite its volatility."