Cointelegraph Team
Cointelegraph
The Bitcoin (BTC $22,825) price surge above $20,000 in the second week of January led to a market FOMO (fear of missing out), especially among small BTC holders.
There was a significant surge in BTC addresses holding 0.1 BTC or less after Jan. 13. According to data shared by crypto analytics firm Santiment, 620,000 new BTC addresses have popped up since the Jan. 13 BTC price surge, totaling 39.8 million.
Bitcoin addresses holding 0.1 BTC or less. Source: Santiment
The rise in Bitcoin addresses holding small amounts indicates regrowing investor optimism in 2023. The growth of such small addresses was very limited and slowed remarkably post-FTX collapse in November 2022, but 2023 has seen the rate of new address creation increase.
The recent spike in small Bitcoin addresses is the highest since November 2022, when BTC dipped to its cycle low of around $16,000. The price decline prompted small traders to scoop up BTC at a lower price. The current surge is attributed to a growing bullish sentiment in the market where, apart from Bitcoin, several altcoins have also recorded multimonth highs, while the overall crypto market surged over 30%.
Bitcoin continued its bullish momentum into the first week of February, reaching a five-month-high above $24,000. However, the $24,000 resistance proved too much to hold, with the price hovering around $23,000 at the time of writing. Market pundits believe February may not be as bullish as January.
Bitcoin 1-year price chart . Source: Coinmarketcap
Amid confusion over how incoming United States macroeconomic data may affect market sentiment, market analysts have warned that the rebound in crypto and stocks this year may flip bearish this month. They attributed the potential upcoming downward trend to the extent of the Federal Reserve’s interest rate hikes.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.
Recommended Content
Editors’ Picks
Three Arrows Capital demands $1.5B increase in the FTX lawsuit
Liquidators managing Three Arrows Capital's (3AC) bankruptcy have filed a motion to raise their claim against FTX from $120 million to $1.53 billion. Bloomberg reports that FTX allegedly liquidated and seized around $1.33 billion in assets from the hedge fund to settle debts just two weeks before 3AC’s collapse.
Missing crypto influencer Kevin Mirshahi found dead in Montreal Park
Authorities report that the remains of Kevin Mirshahi, a prominent crypto influencer who was abducted in June, have been found in a Montreal park. Local police informed “The Gazette” that a passerby found the grim discovery on October 30 in Île-de-la-Visitation Park.
XRP struggles near $0.7440, could still sustain rally after Robinhood listing
Ripple's XRP open interest has declined by over 10% in the past 24 hours. Robinhood's listing of XRP could serve as a catalyst for renewed demand. XRP continues to struggle near historically strong resistance after sustaining another rejection at $0.7440.
Dogecoin price forecast: Miners offload $240M as DOGE approaches risk zone
After reaching a three-year peak of $0.43 on November 12, Dogecoin price wobbled 13% to find support at the $0.38 level on Wednesday. Miners capitalized on Trump’s recent D.O.G.E confirmation statement to offload 620 million DOGE in the last three days.
Bitcoin: Further upside likely after hitting new all-time high
Bitcoin hit a fresh high of $76,849 on Thursday as crypto-friendly candidate Donald Trump won the US presidential election. Institutional demand returned with the highest single-day inflow on Thursday since the ETFs’ launch in January.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.