Since the collapse of crypto exchange FTX, the bitcoin price has traded below $20,000. However, bitcoin (BTC) has been on a nice revival since the start of the new year and managed to break through this psychological barrier in the second week of January. After the Federal Reserve raised interest rates by 0.25%, it even managed to set a high of just above $24,000.
The price increase above $20,000 led to a wave of FOMO, in other words Fear Of Missing Outunder the small BTC holders.
Interest in bitcoin
Data from crypto analytics firm Santiment shows that there was a significant increase in the number of BTC addresses by 0.1 BTC or less since January 13. On this day, the price was moving around $19,000. In total, the number of addresses increased by 620,000 to a total of 39.8 million. This is the highest number since being bitcoin low had dropped from just under $16,000 in November.
? There have been ~620k small #Bitcoin addresses that have popped back up on the network since #FOMO returned on January 13th when price regained $20k. These 0.1 $BTC or less addresses grew slowly in 2022, but 2023 is showing a return of trader optimism. https://t.co/CUAS0nV23x pic.twitter.com/wo8NBDNXs3
— Santiment (@santimentfeed) February 6, 2023
The increase in the number of Bitcoin addresses with small amounts indicates renewed investor optimism in 2023. For example, you could recently read in the Bitcoin news that Bitcoin sentiment has recovered to a ten-month high. The Fear & Greed Index rose to a value of 61, which belongs to the category ‘greed’.
Last week you could read a column by psychologist Michael Eisink that was devoted to the psychological principle of FOMO, its effect on the average crypto investor and the best strategy to deal with it.
Bitcoin rate
At the time of writing, bitcoin is in the middle of a slight correction. Earlier today you could read that the bitcoin price has plunged below $23,000 after failing to break through $24,200 last week. This downward pressure arose after new data from the United States on the unemployment figures came out positive. This reduces the chance that the central bank will cut interest rates in the short term.