The growth of small BTC addresses is very limited in 2022 and has fallen to new lows after FTKS, but the large increase in January indicates that traders are very optimistic.
The price surged above $20,000 in the second week of January causing market FOMO (fear of missing out), especially among small BTC holders.
There was a significant increase in the number of BTC addresses with 0.1 BTC or less after January 13th. According to data shared by crypto-analytics company Santiment, 620,000 new BTC addresses have appeared since the BTC price spike on January 13, for a total of 39.8 million.
The increase in the number of Bitcoin addresses holding small volumes indicates the recovery of optimistic investors in 2023. The growth of such small addresses was very limited and slowed down significantly after the collapse of FTKS in November 2022, but 2023 saw an increase in the rate. Creating a new address.
The recent increase in the small Bitcoin address is the largest since November 2022, when BTC fell in the low round around $ 16,000. The drop in price encouraged small traders to buy BTC at lower prices. The current increase is due to the growth of bullish sentiment in the market where, in addition to Bitcoin, several altcoins have also reached multi-month highs, while the overall crypto market has increased by more than 30%.
Related: Bitcoin, Ethereum and select altcoins will continue to rally despite the February decline
Bitcoin continued its upward trend in the first week of February, reaching a five-month high above $24,000. However, the $24,000 resistance proved too much to hold and the price hovered around $23,000 at the time of writing. Marketing experts believe that February may not be as optimistic as January.
Amid confusion over whether incoming U.S. macroeconomic data could affect market sentiment, market analysts warned that the year-to-date recovery in cryptocurrencies and stocks could slow down this month. They reasoned that the trend may fall within the scope of the Federal Reserve’s interest rate hikes.