Home News Bitcoin surpasses $20K, triggering FOMO and 620K new wallets.

James Carter

06 Feb 2023

Bitcoin surpasses $20K, triggering FOMO and 620K new wallets.

The growth of small Bitcoin addresses was extremely sluggish in 2022 and reached all-time lows after the FTX. Despite this, there was a considerable increase in January, which implies that trader optimism is high.

Fear of missing out (FOMO) was prevalent in the market during the second week of January as a result of the rise in Bitcoin’s price above $20,000, particularly among holders of smaller amounts of BTC.

After January 13, there was a large increase in the number of Bitcoin addresses that held 0.1 Bitcoin or less. Since the price of bitcoin spiked on January 13, a total of 39.8 million new Bitcoin addresses have been created, according to data that was recently provided by the cryptocurrency analytics company Santiment.

In 2023, a regrowing investor optimism can be inferred from the rise in the number of Bitcoin addresses holding only tiny sums. The construction of new addresses has been increasing at a faster rate as of 2023, despite the fact that the growth of such small addresses was extremely constrained and halted dramatically when the FTX collapsed in November 2022.

The latest increase of Bitcoin addresses for transactions of a modest value is the most it has been since November 2022, when Bitcoin reached its cycle low of approximately $16,000. As a result of the price drop, smaller dealers were able to purchase Bitcoin at a more favourable price. The present increase can be due to a growing bullish feeling in the market, where, in addition to Bitcoin, other altcoins have also hit multimonth highs, while the total crypto market rose over 30%. This is the market where the majority of the altcoins have outperformed Bitcoin.

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In the first week of February, the bullish momentum that Bitcoin had been riding into the month continued, as the cryptocurrency reached a new high of over $24,000. However, the $24,000 resistance proved to be too much for the market to hold, and at the time this article was written, the price was trading at about $23,000. According to the opinions of market analysts, February may not be as positive as January was.

In light of the uncertainty surrounding the potential impact of forthcoming macroeconomic data from the United States on market sentiment, market professionals have issued a warning that the recent bullish trend in crypto and stocks may reverse course this month. They ascribed the extent of the likely future downward trend to the Federal Reserve’s hikes in interest rates, which have been taking place recently.