Bitcoin price above $20K creates FOMO with 620K new BTC wallets

In 2022, the growth of small BTC addresses turned out to be limited, but given the upward trend, optimism among traders seems to be growing.

FOMO for small BTC holders

In the 2nd week of January, the price of Bitcoin surged above $20,000. This caused FOMO (Fear Of Missing Out), especially among small BTC holders.

Since the BTC price increase since the beginning of this year, the number of BTC addresses has increased significantly by up to 0.1 BTC. According to data from crypto analytics company Santiment, 620,000 new BTC addresses have been added since that date, bringing the total number to 39.8 million.

In 2023, there seems to be rising optimism among Bitcoin investors, evidenced by the proliferation of small-value Bitcoin addresses. Although the growth of these types of addresses has been limited in the past, a remarkable change has been observed in 2023. After the collapse of the FTX in November 2022, the number of new small addresses has increased, indicating rising investor optimism.

The recent spike in the number of small Bitcoin addresses is the highest since November 2022, when BTC fell to a cyclical low of around $16,000. This drop in price prompted small investors to invest in Bitcoin at a lower price. The current surge is seen as a result of increasing bullish sentiment in the market, where several altcoins, in addition to Bitcoin, hit multi-month highs while the overall crypto market rose by more than 30%.

This positive trend continued in the first week of February, after which BTC even briefly surpassed $24,000. Still, February could be less bullish than January. For example, an emerging downward trend in the financial world is expected due to, among other things, the size of interest rate hikes by the US Federal Reserve (FED). However, it is not known exactly how this will turn out and is therefore not immediately a trading advice.

Read Also:  Bitcoin Price Plunge Explained

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