Amid BTC decline, retail addresses now hold 780,000 Bitcoins, setting fresh highs
InTheBlock analytics indicate that Bitcoin’s retail accumulation could likely be at its peak, as the aggregate balance held by addresses with $0.1 to $1 BTC hit record highs of over 780,000 Bitcoin. Along with the rest of the cryptocurrency market, Bitcoin suffered further declines to hit lows of $38,590 on March 4.
The on-chain analytics firm notes a sharp growth in February for small Bitcoin addresses holding up to 1 BTC, or up to roughly $40,000 worth of Bitcoin, which might imply a comeback of retail traders.
U.Today previously reported that the number of Bitcoin trader addresses holding less than 30 days, or short-term holders, has recently increased along with the price of Bitcoin, while this group has also increased its balance by almost 5 %. According to IntoTheblock, this could indicate that retailer interest is gradually returning to the market.
The number of Bitcoin daily active users has also risen in tandem with the growth in short-term holders, surging above 1 million, as per recent IntoTheBlock data.
Bitcoin declines below $40,000
Bitcoin (BTC) hit a low of $38,590 on March 4 to record three days of consecutive declines since March 2. Bitcoin began its decline from a high of $45,332 on March 2, likely due to fears that the Federal Reserve would quickly tighten monetary conditions in the face of rapidly growing inflation.
According to crypto analyst Ali Martinez, the latest dip wiped off overleveraging in the market: “On Binance Futures, 58.65% of all accounts are net-long on Bitcoin, which could result in a BTC dip to liquidate some overleveraged traders.”
According to data from Coinglass, 65,434 traders were liquidated as the entire crypto market plunged. Over $229 million has been liquidated in the last 24 hours; nearly $105.84 million was related to Bitcoin trading positions. On the Bybit exchange, the largest liquidation order has been placed.
The Crypto Fear and Greed Index that gauges market sentiment measured 22 points out of 100, or “extreme fear,” at press time.
Bitcoin is trading at $39,200 at press time.
