- Retail investors are showing interest in bitcoin, while whales seemed uninterested
- Bitcoin activity is declining, but Bitcoin’s market capitalization dominance is growing
According to information from glass knotNote that the number of addresses containing more than 0.01 bitcoins [BTC] It reached an all-time high. This was a sign of huge interest in bitcoin from private investors.
its yours BTC holdings flashing green? Check out the profit calculator
David versus Goliath
Private investor interest can also be seen in Santiment’s data. According to Santiment, bitcoin Addresses holding anything from 0.01 BTC to 1000 BTC are starting to buy more Bitcoin.
This buying spree occurred right after the Bitcoin price drop on December 15th. It turns out that after the mentioned date, many retail investors decided to buy BTC at a discount.
However, during the same period, addresses containing 1,000 to 10,000 Bitcoins started to drop. This means that BTC whales have started to exit their positions and sell their BTC.
Half an empty cup
It turns out that the big addresses have lost faith in BTC. This opinion was also shared by merchants. According to Coinglass data, the number of short positions taken against Bitcoin has increased in recent days. At the time of writing, 51% of traders have taken short positions against bitcoin.
One of the reasons for the increasing number of short positions being taken against BTC could be the growing currency reserves. to me CryptoQuantIf the coin reserves continue to rise, this indicates that selling pressure on BTC may increase.
Another reason for the pessimistic view maintained by traders could be due to the decrease in activity on the Bitcoin network. According to Santiment data, Bitcoins The speed has decreased significantly in the past few days.
This indicates that the number of times $BTC has been transferred between addresses has decreased. Along with the decreasing speed, the number of BTC transfers has also seen a decrease.
However, Bitcoin’s market capitalization dominance was not affected by the lack of activity or trader sentiment. in the past month, Bitcoins The dominance of market capital has grown exponentially. According to Messari data, Bitcoin has captured 39.16% of the total crypto market.
how much Can you get Bitcoin for $1?
Along with the increasing dominance of market capitalization, the surrounding volatility BTC It decreased by 59.51% according to Mesari. This made buying BTC less risky for interested investors.
It remains to be determined whether the faith of retail investors outweighs the pessimistic view shared by whales and traders.
At the time of writing, BTC was trading at $16,840.85 and its price is down 0.03%.