Bitcoin Bull Run: On-Chain Data Points To Declining Retail Participation
17 Februar 2024 - 7:45AM
NEWSBTC
The price of Bitcoin has continued to soar this week, with the
premier cryptocurrency consolidating its place above the $50,000
mark. Interestingly, on-chain data shows that a particular class of
investors had less to do about the recent rally, sparking
conversations about their participation in the current bull cycle.
Recent BTC Price Primarily Fueled By ‘Institutional Demand’ In a
recent post on X, analyst Ali Martinez pointed out that there has
been an apparent decline in the involvement of retail investors in
the Bitcoin market. This shift comes despite the recent surge in
the flagship cryptocurrency’s price. This revelation is based on
the noticeable fall in the daily creation of new Bitcoin addresses.
According to the crypto intelligence platform Glassnode, this
metric tracks the number of unique addresses that appeared for the
first time in a transaction of the native coin in the network.
Chart showing the number of new addresses on the Bitcoin network |
Source: Ali_charts/X Related Reading: AVAX Rides The Crypto
Avalanche To Success: Market Cap Skyrockets By 344% Typically, more
individuals are inclined to enter the market as the value of
Bitcoin increases, often resulting in a spike in new addresses to
store and transact the coin. However, there is currently a
deviation between the BTC price and the creation of new addresses.
According to Martinez, this curious trend suggests a lack of retail
participation in the ongoing Bitcoin bull run. The crypto analyst,
however, tied the flagship cryptocurrency’s recent positive
performance to institutional players’ activity. This analysis seems
to hold some weight, considering it’s been a little over a month
since the Securities and Exchange Commission approved the trading
of spot BTC exchange-traded funds in the United States. These
investment products are issued and managed by some of the world’s
largest financial companies, including BlackRock, Grayscale,
Fidelity, and so on. Bitcoin Whales Show Highest Activity Since
2022 Another on-chain revelation that somewhat supports the
argument of increased institutional participation has emerged.
According to analytics platform Santiment, BTC whale activity has
been heating up lately, reaching its highest level in over 20
months. Data from Santiment shows that wallets with 1,000 – 10,000
BTC are on an accumulation spree, adding roughly 249,000 coins
(worth about $12.8 billion) in 2024 only. However, it is worth
mentioning that a lower tier of investors (100 – 1,000 BTC) has
sold more than 151,000 Bitcoin since the year started. Related
Reading: Aptos Market Cap Skyrockets, $574 Million Worth Of APT
Tokens Set To Shake The Market In Q1 2024 As of this writing,
Bitcoin is valued at $51,950, reflecting a 0.6% decline in the past
day. Nonetheless, the premier cryptocurrency has retained most of
its weekly profit, having gained almost 10% in the last seven days.
Bitcoin price hovering around $52,000 on the daily timeframe |
Source: BTCUSDT chart on TradingView Featured image from iStock,
chart from TradingView
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