Investors with small capital have started buying up Bitcoin. Where will this lead to?
Bitcoin could soon enter a phase of panic buying by individual consumer investors, but so far analysts have little reason for much optimism. This conclusion was posted on Twitter the day before by William Clemente, head of analytics at Blockware. Consumer investors in this context refers to market players with less than 1 BTC, which is about $45,000 at the current exchange rate of the cryptocurrency. We will tell you more about what is happening.
It should be noted that bitcoins are now being bought by large investors as well. For example, today it became known about the activity of Luna Foundation Guard from Terra, which promised to invest 10 billion dollars to BTC.
Today they transferred $231.4 million to the Binance exchange.
Luna Foundation sends money to the Binance exchange
As a result, the company’s address balance grew by 4,550 bitcoins.
The balance of the Terra’s address grew
Well, a total of 35767.98 BTC worth $1.62 billion are now in the giant’s wallet.
Terra’s Bitcoin address balance
What’s going on in Bitcoin?
Clemente’s statement coincides with information from analysts at Glassnode. They note a noticeable surge in wallet activity with balances of less than 1 BTC since the beginning of this year. Normally, such a trend would indicate a local peak in the cryptocurrency’s value, but this time it could be different. Here’s an expert’s rejoinder describing what’s happening inside the niche.
It’s a really interesting chart. Consumer investors are currently buying coins at the second-highest rate in Bitcoin history. If you look at their balance sheet, most of these spikes have coincided with peaks on the Bitcoin chart. This spike is an exception.
Spikes in demand for crypto from consumer investors
According to Cointelegraph sources, each segment of this group of investors with capital as low as 0.001 BTC has been increasing its market share over time, but it is since mid-February that there has been a major spike in this trend. Now market players with capital from 0.1 to 1 BTC control a total of nearly 800,500 BTC in their wallets, the expert says.
Either we are doomed, or these investors have decided to use Bitcoin as an escape from the traditional financial system. The optimist in me hopes it is the latter.
That is, the expert suggests that even small investors may have become acutely aware of the prospects and potential of digital assets in the form of Bitcoin and other coins. The reason for this is record inflation in many countries around the world, which on top of that is exacerbated by the current actions of the Russian Federation. At the same time, BTC inflation is fixed, and adding a couple or three thousand coins to circulation at one's will is trivial.
Dynamics of amount of wallets with balance less than 1 BTC
Meanwhile, Bitcoin price has already surpassed its yearly high a bit earlier, approaching the $50,000 mark on the chart. At the same time, the number of holders of the major cryptocurrency who can sell it on the plus side right now has risen sharply. This is also partly a dangerous signal: in Bitcoin’s history, it has often coincided exactly with local price highs.
The dynamics of the number of investors who can sell their coins to the upside
So will Bitcoin increase in price this quarter? A lot depends here on optimism and in traditional financial markets, which are still in a “turbulence zone” due to geopolitical tensions in the world. However, there are positive precedents – usually April is considered one of the most profitable months of the year for BTC, so let’s count on a good situation.
Popularity of search query about Bitcoin on Google Trends
The potential growth of the crypto market is being prepared for a symmetrical response in central banks around the world, with more than 80 percent of them interested in issuing their own digital currency (CBDC). That’s according to a new report from consultancy PwC. According to PwC crypto analyst Haydn Jones, central banks have recently been “ripe” for a bold move to create digital currencies.
Countries are at different levels of readiness regarding CBDC issuance. Each country has its own motivating factors. Increasing financial inclusion, facilitating cross-border payments and combating financial crime are all important factors. We expect CBDC research, testing and implementation to intensify in 2022.
Cryptocurrency market
We believe that small investors' interest in cryptocurrencies, should it increase, should lead to a marked increase in the exchange rates of various coins. This has happened before, though. In addition, it is important to understand that start-up investors may not have a lot of capital, but they are taking advantage of their numbers. This means that the prospects for coins are not bad.
Stay tuned to our millionaires cryptochat. There we will discuss other important developments related to the world of blockchain and decentralisation.
SUBSCRIBE TO OUR CHANNEL ON TELEGRAM. MORE INTERESTING NEWS HERE.
Related posts
