- Retail investors are showing interest in Bitcoin while whales appeared disinterested
- Activity on Bitcoin is declining, however BTC market cap dominance is growing
According to data from glass nodewas observed that the number of addresses contains more than 0.01 bitcoin [BTC] had reached an all-time high. This indicated massive interest in Bitcoin from retail investors.
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David versus Goliath
Retail investor interest can also be observed in Santiment’s data. According to Santiment, Bitcoin Addresses holding between 0.01 BTC and 1000 BTC started buying more Bitcoin.
This buying spree took place immediately after Bitcoin’s price drop on December 15th. It appeared that after the mentioned date, several retail investors decided to buy BTC at a discount.
However, during the same period, addresses with 1,000 to 10,000 bitcoins began to decrease. This meant that BTC whales had started exiting their positions and selling their BTC.
Source: Santiment
glass half empty
It seemed that big names were losing faith in BTC. This feeling was also shared by retailers. According to data from Coinglass, the number of short positions taken against bitcoin has increased over the past few days. At press time, 51% of traders had short positions against bitcoin.
One of the reasons behind the growing number of short positions being taken against BTC could be the growing foreign exchange reserve. Corresponding CryptoQuantFX reserve had continued to rise, suggesting that selling pressure on BTC could be increasing.
Source: coin jar
Another reason for traders’ bearish view could be due to declining activity on Bitcoin’s network. According to Santiment, Bitcoins The speed has dropped significantly in the last few days.
This indicated that the number of transfers of $BTC between addresses had decreased. In connection with a decreasing speed, the number of BTC transfers also decreased.
Source: Santiment
However, Bitcoin’s market cap dominance has not been affected by the lack of activity or trader sentiment. Last month, Bitcoins The dominance of market capitalization increased immensely. According to Messari’s data, Bitcoin had captured 39.16% of the total crypto market.
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Coupled with a growing dominance of market cap, volatility is the environment Bitcoin fell by 59.51% according to Messari. This made buying BTC less risky for interested investors.
Source: Messari
It remains to be seen whether retail investor belief will trump the pessimistic view shared by whales and traders.
At the time of writing, BTC was trading at $16,840.85 and its price was down 0.03%.
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