- Bitcoin’s low volatility has managed to attract both retail and wholesale investors who have capitalized on the opportunity to buy into the cryptocurrency
- Selling pressure from miners decreases as revenue continues to rise
Recent data from Glassnode suggests that Bitcoins [BTC] Volatility has dropped significantly over the last month. This low volatility attracted both retail and wholesale investors who have taken advantage of the opportunity to buy into the cryptocurrency.
Read Bitcoins [BTC] Price prediction 2023-2024
One of the reasons for this could be that on previous occasions when Bitcoin showed low volatility, like April 2019 and August 2020, BTC experienced a short-term rally and saw its price surge.
Source: Glassnode
Whales and small investors shake hands
The interest from large and small investors was indicated by the data provided by Glassnode. For example, the number of addresses with 0.1 or more coins hit an all-time high of 4,212,110. Additionally, the number of addresses with 10 or more coins hit a two-year high of 155,417.
Although interest from both big names and retail investors could be beneficial to BTC in the near term, a large concentration of Bitcoin held by BTC whales could leave retail investors vulnerable to sudden price moves. These movements could be a direct result of whale behavior.
Source: glass node
The mining angle
Miner interest could also increase along with retail interest. This was because miners’ earnings increased. According to data from Glassnode, the total mining revenue for Bitcoin increased from 573 BTC to 978 BTC in the past few weeks. Growing miner revenue could ease selling pressure on bitcoin miners.
Source: glass node
In addition, the mining hashrate, which measures the processing power of the Bitcoin network, also increased by 0.87% over the past month. A high hash rate indicates that the BTC network remains very secure.
Another positive for the mining industry would be the recent announcement by Hut8 Mining Corp. It stated that it mined 3,568 Bitcoin in 2022 and increased its reserves by 65% to 9,086 BTC in 2022. Hut8 stated that it plans to stay true to its HODL strategy and placed 100% of the Bitcoin it mined in custody in December.
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In terms of market performance, Bitcoin’s market cap dominance has increased over the past three months. At press time, BTC’s market cap is 39.192%, according to Messari.
Source: Messari
Overall, Bitcoin’s drop in volatility could be a positive sign for the cryptocurrency’s future. Additionally, growing interest from both retail and large investors, as well as rising mining revenues could be indicators of a bullish future for BTC.
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