Small Bitcoin addresses that hold 0.1 BTC or less have risen rapidly since the FTX blowout. As many as nearly 620k new addresses of this cohort have made their record-breaking appearance in less than 3 months, Santiment noted.
As BTC/USD crossed the $20,000 mark again on January 13, the subsequent growth in the number of wallets meant that FOMO has returned.
According to the data platform, these addresses with 0.1 BTC or fewer grew slowly in 2022, but 2023 is showing a return of trader optimism.
On the other hand, BTC prices have fallen back to nearly 6% in less than a week and are back below $23k, stalling the much-awaited rally.
Experts believe that the king coin is entering the second week of February in another bearish mood as multi-month highs fail to hold.
The coin’s 4% decline over the previous seven days reduced its year-to-date gain to 39% and was the largest weekly decline since November.
Rising US dollars amid bad trade in Europe or the US and plummeting Asian markets could be another obstacle for Bitcoin bulls to face.
To top it off, recent US jobs data disappointed investors’ hopes that this year’s policy tightening would soon come to a halt and possibly turn around, dovish wagers that had fueled a January rally across international markets.
That rally swept up large and small tokens alike — ranging from Bitcoin and Ether to Axie Infinity and Decentraland.
Bitcoin Could Face Retest Over US CPI Data
John Toro, head of trading at digital-asset exchange Independent Reserve, claims that the payrolls report increased Treasury yields, which have been a major influence in influencing demand for riskier products.
That being said, traders are now betting on some macroeconomic data that is slated to come out this week from the Federal Reserve.
Analysts like Michaël van de Poppe, founder, and CEO of trading firm Eight, believe that much depends on the outcome of Consumer Price Index [CPI] data for January, due Feb. 14.
The U.S. dollar might gain if the figures indicate that inflation is slowing more slowly than anticipated or even deviates from that downward trend, which would again play the spoiler for risk assets.
BTC traded at around $22,871 at the time of writing, down by over 2% in the daily index.