The Bitcoin (BTC) price surge above $20,000 in the second week of January caused FOMO (fear of missing out) in the market, especially among small BTC holders with a wallet balance of 0.1 BTC.
There was a significant increase in BTC addresses with 0.1 BTC or less, after January 13. According to data shared by cryptanalysis firm Santiment, 620,000 new BTC addresses have appeared since the January 13 BTC price hike for a total of 39.8 million.
Bitcoin addresses with 0.1 BTC or less. Source: Feeling
The rise of small Bitcoin addresses indicates renewed investor optimism in 2023. Growth for such small addresses was very limited and slowed noticeably after the FTX crash in November, but 2023 has seen the rate
The recent rise in small Bitcoin addresses is the highest since November 2022, a time when the BTC price fell to its cycle low of around $16,000. The price drop led small traders to buy BTC at a lower price. The current rise is attributed to growing bullish sentiment in the market where, in addition to Bitcoin, several altcoins have also posted multi-month highs, while the overall crypto market is up more than 30%.
Related: Bitcoin, Ethereum, and Select Altcoins Set to Resume Rally Despite February Crash
Bitcoin also continued its bullish momentum in the first week of February, hitting a new five-month high above $24,000. However, the price could not stay above the $24,000 resistance for long and finally fell below $23,000 earlier today. Market experts believe that February may not be as bullish as January.
Bitcoin 1-year price chart. Source: Coinmarketcap
Amid confusion over how incoming US macroeconomic data may affect market sentiment, market analysts have warned that the rally seen in cryptocurrencies and stocks this year may turn bearish this month. They attributed the potential downside looming to the extent of the Federal Reserve’s rate hikes.
This post Bitcoin Price Above $20K Creates FOMO With 620K BTC Wallets Popup
was published first on https://cointelegraph.com/news/bitcoin-price-over-20k-creates-fomo-with-620k-btc-wallets-pop-up
