In 2022, the growth of small Bitcoin (BTC) addresses was limited, but there seems to be growing optimism among traders as the upward trend continues. The second week of January saw the price of Bitcoin soar above $20,000, causing FOMO among small BTC holders.
Rise in Small BTC Wallets Since the beginning of the year, the number of BTC addresses with a maximum of 0.1 BTC has significantly increased, with 620,000 new BTC addresses being added, bringing the total to 39.8 million, according to crypto-analysis firm Santiment.
Growing Optimism among Bitcoin Investors
There seems to be increasing optimism among investors in Bitcoin in 2023, as evidenced by the increase in Bitcoin addresses with small amounts. Although the growth of these addresses was limited in the past, a noticeable change has been observed in 2023. After the collapse of FTX in November 2022, the number of new small addresses has increased, indicating growing optimism among investors.
Recent Peak in Small Bitcoin Addresses
The recent peak in the number of small Bitcoin addresses is the highest since November 2022, when BTC fell to a cyclical low of around $16,000. This price drop prompted small investors to invest in Bitcoin at a lower price. The current increase is seen as a result of growing bullish sentiment in the market, where several altcoins have also reached multi-month highs, and the total cryptocurrency market has risen by over 30%.
Continued Positive Trend in February
This positive trend continued in the first week of February, with BTC even reaching above $24,000. However, February might be less bullish than January, as an emerging downward trend is expected in the financial world, due to factors such as the size of interest rate increases by the Federal Reserve (FED).
Crypto detectives summary:
- The price of Bitcoin surpassing $20,000 has caused FOMO (Fear Of Missing Out) among small BTC holders.
- The growth of small BTC addresses has been limited in 2022, but there seems to be growing optimism among traders in 2023.
- The number of BTC addresses with a maximum of 0.1 BTC has significantly increased since the start of the year, with 620,000 new BTC addresses, bringing the total to 39.8 million.
- The recent peak in the number of small Bitcoin addresses is the highest since November 2022 when BTC reached a cyclical low of around $16,000.
- The current increase is seen as a result of increasing bullish sentiment in the market, where several altcoins and the total cryptocurrency market have also reached multi-month highs.
- February might be less bullish than January, due to an upcoming downward trend in the financial world, caused by factors such as the size of interest rate increases by the Federal Reserve (FED).
What is FOMO and how does it relate to small Bitcoin holders?
FOMO stands for Fear Of Missing Out, and it refers to the feeling of anxiety or regret that people experience when they miss out on a potentially lucrative opportunity. In this scoop, FOMO has been observed among small Bitcoin holders who have seen the price of the cryptocurrency rise above $20,000 and worry that they are missing out on potential profits.
What caused the recent increase in the number of small Bitcoin addresses?
The recent increase in the number of small Bitcoin addresses can be attributed to a combination of factors, including the overall growth of the cryptocurrency market and the rise in bullish sentiment among investors. The growth in the number of small addresses has been observed since the price of Bitcoin hit $20,000, and has been particularly notable since the collapse of the FTX in November 2022. This trend is seen as a result of small investors looking to buy Bitcoin at a lower price after its price fell to a cyclical low of around $16,000 in November 2022.