The number of small Bitcoin holders hits an all-time high as investors on the sidelines buy the valley
The value of Bitcoin (BTC) has corrected further below $20,000, with bears continuing to dominate as investors look for signs of a bottom.
Meanwhile, the price correction appears to be giving investors an opportunity to accumulate more of the cryptocurrency. In fact, as of September 16, the number of Bitcoin addresses with at least 0.01 BTC has reached a new all-time high of 10,702,698, according to data of blockchain analytics platform Glass node indicates.
At the same time, the number of new daily Bitcoin addresses created on the network also recorded a peak of 417,354 new addresses.
Sidelined investors who got involved in Bitcoin
In this line, prominent crypto trading analyst Ali Martinez stated that the trend can be attributed to input from sideline investors engaging in the market.
“This suggests an increase in interest from sidelined investors to scoop up BTC around the current price levels,” he said in a chirping on September 16.
The latest Bitcoin address activity has correlated with plunging the asset’s value, which faces a new battle not to fall further below $20,000. At press time, the flagship cryptocurrency was trading at $19,800, down nearly 2% over the past 24 hours.
In particular, it can be assumed that investors are likely to accumulate more Bitcoin and take advantage of the ongoing price drop. In this case, Bitcoin is known to be relatively expensive, and the price drop has potentially acted as a catalyst to acquire the asset.
FOMO sets in
Furthermore, the trend reflects the historical investment strategy of the crypto community of buying down in anticipation of a future price rise. In this line, retailers are known to get involved when the fear of missing out (FOMO) sets in.
Interestingly, the FOMO scenario probably picked up recently after Bitcoin recorded minor gains topping the $22,000 level. However, the price was corrected in the wake of soaring inflation in the US, with the Federal Reserve expected to raise interest rates.
Overall, the market is likely waiting for a potential bottom, with recent data indicating that buying interest is waning. Finbold reported on September 14 that investor interest in buying Bitcoin had remained low compared to when the value of the asset rose.
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