The rise in Bitcoin’s price (BTC) of over $20,000 caused fear of missing out (FOMO), which was particularly prevalent among those who had only a small amount of BTC.
There was an increase in Bitcoin addresses holding 0.1 Bitcoin or less after January 13.
According to Santiment’s data, there have been 39.8 million new Bitcoin addresses created since January 13 when bitcoin prices spiked.
A growing number of Bitcoin addresses that hold small sums may suggest that investors are feeling more confident in 2023. Despite the fact that such small addresses have been growing at a rapid pace, it was slowed by the collapse of the FTX in November 2022.
The most recent surge in Bitcoin addresses that are less than one bitcoin is the largest since November 2022, when BTC’s cycle low was about $16,000. Because of the price drop, smaller dealers could purchase Bitcoin at an attractive price. This could be due to a growing optimism in the market where other altcoins as well as Bitcoin have reached multimonthly highs, while total crypto market has risen over 30%. This market is where most altcoins outperformed Bitcoin.
The positive momentum Bitcoin was riding into February continued in the first week, when the cryptocurrency hit a new high of $24,000. The market was unable to sustain the $24,000 barrier and, at the time of writing, the price was around $23,000. Market analysts believe February might not be as positive than January.
Market professionals warn that market sentiment could be affected by the uncertain impact of macroeconomic data coming from the United States. The Federal Reserve’s recent rises in interest rates are responsible for the magnitude of the probable future downtrend.