- Decline in Small Investor Activity
- Changes in Short-Term Holder Behavior
- Analysts' Analysis and Forecast
The recent rally of Bitcoin to $65,000 generated excitement, but prices held at that level for only four days. Currently, the cryptocurrency is trading around $63,700, raising questions about the participation of small investors in the market.
Decline in Small Investor Activity
During previous rallies in 2017 and 2021, small investors actively participated in the market. The Coinbase app topped download charts, but now it is ranked 438th. Transaction volumes under $100,000, often executed by individuals, account for only half of the last peak level in 2024. This indicates a decline in small investor activity.
Changes in Short-Term Holder Behavior
Short-term Bitcoin holders (STH), who usually play a key role during market peaks, are not showing the same level of activity this time. The amount of bitcoin held by these speculators has decreased, indicating that the current rally is happening without their participation.
Analysts' Analysis and Forecast
Transaction fees are also at their lowest, amounting to only $500,000 per day. Analysts note that small investors are remaining quiet, suggesting a potential rise yet to come. Many believe that short-term traders, seeing stagnation, have left the Bitcoin market.
Thus, the current Bitcoin rally differs from previous peaks, with the absence of small investor activity and the decline in short-term holder participation playing key roles. Analysts continue to monitor the situation, focusing on potential future market changes.
Comments