Smaller Bitcoin businesses are rapidly increasing their BTC holdings, although this has historically occurred before to price tops.
Bitcoin (BTC) is seeing what appears to be panic buying by ordinary investors, according to new statistics – but not all is as it appears.
On April 4, William Clemente, chief insights analyst at Blockware, discovered a significant increase in the amount of BTC held by smaller hodlers.
The 2022 retail FOMO surge is being referred to as a “outlier.”
Typically referred to as “retail,” entities possessing less than 1 BTC are regarded to be ordinary customers, as opposed to corporate or institutional investors.
According to data from on-chain analytics firm Glassnode, these smaller businesses’ percentage of the total BTC supply climbed significantly in 2022.
Historically, Clemente cautioned, such events have occurred in conjunction with macroeconomic price peaks, but given recent BTC/USD behaviour, this time appears to be different.
“This is a truly fascinating chart. Retail (0-1 BTC) is currently purchasing at the second-highest rate in Bitcoin history,” he added.
“When it comes to retail holdings, the majority of increases have occurred in conjunction with macroeconomic tops, but on many occasions, they have purchased wisely. This surge represents a statistical oddity.”
Every section of the retail market, from 1 BTC to the lowest 0.001 BTC, has been expanding its market share over time, but a major increase has occurred since mid-February, according to Glassnode.
Now, entities holding between 0.1 and 1 bitcoin control almost 800,500 bitcoin.
“Either we are doomed or retail has opted out of the monetary system by using Bitcoin as a savings account. “I hope it is the latter,” Clemente remarked.
As Bitcoin has surged toward $50,000 and out of its 2022 trading range, the portion of the lucrative supply held by short-term holders — those who have been in the market for less than 155 days — has increased.
Short-term holders transitioning from a loss to a profit on their investment has also occurred in the past, according to Glassnode statistics.
…At a time when no one is Googling Bitcoin
While attention has been focused on investor behaviour at a critical on-chain volume level near $50,000, mainstream coverage of Bitcoin remains notably absent.
Google Trends data covering worldwide search interest in “Bitcoin” indicates that there is less engagement than at any point since last November’s all-time high price.
Not only that, Google indicates that the trend is still downward, with Bitcoin on track to have its lowest relative search volume in years if the trend continues.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.
