New data suggests that Bitcoin (BTC), which is seen as panic buying by retail investors has been increasing. But, all may not be as it seems.
William Clemente (Blockware’s lead insights analyst) tweeted on April 4 that there was a significant spike in BTC supply by smaller hodlers.
2022 Retail FOMO rise “an exception”
Often referred to simply as “retail”, entities with less than 1 BTC are more likely to be mainstream consumers than institutional or corporate investors.
Glassnode’s on-chain analytics firm has shown that these smaller players have significantly increased their share in the total supply of Bitcoins by 2022.
Clemente warned that such events are usually associated with macro price tops. However, given the recent BTC/USD behavior this time seems unlike any other.
“This chart is really fascinating. Retail (0-1 BTC), is currently buying at the second highest rate in Bitcoin’s history,” said he.
“Looking at retails’ holdings most spikes have coincided avec macro tops but on many occasions they have bought strategically. This spike is an exception.”
Annotated chart of Bitcoin retail supply ownership Source: William Clemente/Twitter
Glassnode indicates that every segment of the retail brigade, from the largest 0.001 BTC to the smallest, has been growing its market share over the years, with a significant surge in effect since mid February.
Now, there are nearly 800,500 BTC controlled by entities that own between 0.1 and 1 BTC.
“Either the world is ending or retail has decided to save money with Bitcoin and stay out of the fiat currency system. Clemente said that the optimist in me believes it to be the latter.
BTC/USD chart: 0.1-1 BTC entity supply owner vs. BTC/USD chart. Glassnode
Bitcoin’s price has risen to $50,000, and the trading range for 2022 has been extended. Short-term investors — those who have been in the market for less than 155 days — now hold a greater portion of the profitable supply.
Glassnode data indicates that short-term investors who go from losing to profit on an investment have also been accompanied by price tops in the past.
Chart showing the profit and loss of Bitcoin. Source: Glassnode
While no one is Googling Bitcoin
Although attention has been paid to investor behavior at the important on-chain volume level of near $50,000, Bitcoin still receives little mainstream attention.
Related: BTC Starts 2022 All Over Again — 5 Things to Know in Bitcoin This Week
Google Trends data for worldwide searches in Bitcoin shows less interaction since last November’s all time highs.
Google suggests that the trend is not only down but also that Bitcoin will continue to have the lowest relative search volume for years.
Global Google search data for “Bitcoin”, screen shot Source: Google Trendscom. You should do your research before making any investment or trading decision.
Eileen Wilson –Technology and Energy
My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.