Bitcoin [BTC] surged to $65,524, maintaining steady growth above $65,000 even as market trends indicated a potential downturn. Recent data from CoinMarketCap revealed a 7.9% decline in Bitcoin’s value over the past two weeks, with a further slip of 0.1% in the last 24 hours.
Unlike previous cycles, the latest market dynamics have witnessed a notable absence of retail investors in the Bitcoin space, raising concerns among analysts about the lack of short-term holder activity.
An analysis pointed out that the usual surge in retail interest during peak market times had been notably missing, with short-term holders, often new entrants and speculators, holding less than 35% of Bitcoin’s realized cap. Historically, these short-term holders dominated the market at cycle peaks, but their subdued participation this time around has shifted control towards long-term holders and reduced market volatility.
Reflecting on the technical perspective, the decline in active Bitcoin addresses as per Glassnode data further underlined the dwindling retail involvement in the cryptocurrency. This decrease in active addresses and new address creation signaled reduced retail engagement, contrary to the usual trend where increased activity in these metrics signifies higher retail participation.
Despite a mild downtrend and resistance challenges on the daily chart, experts predict potential further decline in Bitcoin’s price before hitting a critical demand zone between $60,000 and $56,500. This decline is anticipated to drive a subsequent price recovery, leveraging heightened demand at lower price levels.
How does the lack of short-term holder activity affect Bitcoin’s price volatility?
Reduced short-term holder participation can lead to decreased market volatility, potentially stabilizing Bitcoin’s price movements.
Bitcoin [BTC] surged to $65,524, maintaining steady growth above $65,000 even as market trends indicated a potential downturn. Recent data from CoinMarketCap revealed a 7.9% decline in Bitcoin’s value over the past two weeks, with a further slip of 0.1% in the last 24 hours.
Unlike previous cycles, the latest market dynamics have witnessed a notable absence of retail investors in the Bitcoin space, raising concerns among analysts about the lack of short-term holder activity.
An analysis pointed out that the usual surge in retail interest during peak market times had been notably missing, with short-term holders, often new entrants and speculators, holding less than 35% of Bitcoin’s realized cap. Historically, these short-term holders dominated the market at cycle peaks, but their subdued participation this time around has shifted control towards long-term holders and reduced market volatility.
Reflecting on the technical perspective, the decline in active Bitcoin addresses as per Glassnode data further underlined the dwindling retail involvement in the cryptocurrency. This decrease in active addresses and new address creation signaled reduced retail engagement, contrary to the usual trend where increased activity in these metrics signifies higher retail participation.
Despite a mild downtrend and resistance challenges on the daily chart, experts predict potential further decline in Bitcoin’s price before hitting a critical demand zone between $60,000 and $56,500. This decline is anticipated to drive a subsequent price recovery, leveraging heightened demand at lower price levels.
How does the lack of short-term holder activity affect Bitcoin’s price volatility?
Reduced short-term holder participation can lead to decreased market volatility, potentially stabilizing Bitcoin’s price movements.
Headline: New Bitcoin Retail Investor Activity Sparks Market Speculation
Summary:
Bitcoin’s [BTC] price has surged to $65,524, maintaining growth above $65,000 despite market trends suggesting a potential downturn. Recent CoinMarketCap data shows a 7.9% decline in Bitcoin’s value over the past two weeks, with a 0.1% drop in the last 24 hours. Unlike previous cycles, there is a notable absence of retail investors, particularly short-term holders, in the current market, raising concerns among analysts. These short-term holders typically dominate at market peaks but now hold less than 35% of Bitcoin’s realized cap, shifting control to long-term holders and reducing market volatility.
Further analysis by Glassnode indicates a decline in active Bitcoin addresses, highlighting decreased retail engagement. This trend contrasts with typical market peaks where increased activity in these metrics suggests higher retail participation. Despite facing resistance and a mild downtrend on the daily chart, experts predict Bitcoin may decline further to a critical demand zone between $60,000 and $56,500, potentially triggering a price recovery due to increased demand at lower levels.
