2024

United

Bitcoin

Show

The price of Bitcoin has continued to soar this week, with the <a href="https://www.newsbtc.com/bitcoin-news/bitcoin-rally-is-far-from-over-2-key-factors-behind-the-momentum/" target="_blank" rel="noopener ">premier cryptocurrency consolidating its place above the $50,000 mark</a>. Interestingly, on-chain data shows that a particular class of investors had less to do about the recent rally, sparking conversations about their participation in the current bull cycle. 
<h2 id="strong-recent-btc-price-primarily-fueled-by-institutional-demand-strong">Recent BTC Price Primarily Fueled By ‘Institutional Demand’</h2> 
In a recent <a href="https://x.com/ali_charts/status/1758535502439825588?s=20" target="_blank" rel="noopener nofollow">post on X</a>, analyst Ali Martinez pointed out that there has been an apparent decline in the involvement of retail investors in the Bitcoin market. This shift comes despite the recent surge in the flagship cryptocurrency’s price. 
This revelation is based on the noticeable fall in the daily creation of new Bitcoin addresses. According to the crypto intelligence platform Glassnode, this metric tracks the number of unique addresses that appeared for the first time in a transaction of the native coin in the network. 
<img loading="lazy" decoding="async" class="aligncenter wp-image-575609 size-large" src="https://www.newsbtc.com/wp-content/uploads/2024/02/GGeSGRhWEAALkM3_5c0499.jpeg?w=860&amp;resize=860%2C484" alt="Bitcoin" width="860" height="484" srcset="https://www.newsbtc.com/wp-content/uploads/2024/02/GGeSGRhWEAALkM3_5c0499.jpeg?w=1800 1800w, https://www.newsbtc.com/wp-content/uploads/2024/02/GGeSGRhWEAALkM3_5c0499.jpeg?w=460 460w, https://www.newsbtc.com/wp-content/uploads/2024/02/GGeSGRhWEAALkM3_5c0499.jpeg?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2024/02/GGeSGRhWEAALkM3_5c0499.jpeg?w=860&amp;resize=860%2C484 860w, https://www.newsbtc.com/wp-content/uploads/2024/02/GGeSGRhWEAALkM3_5c0499.jpeg?w=1536 1536w, https://www.newsbtc.com/wp-content/uploads/2024/02/GGeSGRhWEAALkM3_5c0499.jpeg?w=750 750w, https://www.newsbtc.com/wp-content/uploads/2024/02/GGeSGRhWEAALkM3_5c0499.jpeg?w=1140 1140w" sizes="(max-width: 860px) 100vw, 860px" data-recalc-dims="1"> 
Typically, more individuals are inclined to enter the market as the value of Bitcoin increases, often resulting in a spike in new addresses to store and transact the coin. However, there is currently a deviation between the BTC price and the creation of new addresses. 
According to <a href="https://www.newsbtc.com/bitcoin-news/bitcoin-long-positions-surge-on-bitfinex-whales-add-4230-btc-signaling-potential-price-reversal/" target="_blank" rel="noopener ">Martinez</a>, this curious trend suggests a lack of retail participation in the ongoing Bitcoin bull run. The crypto analyst, however, tied the flagship cryptocurrency’s recent positive performance to institutional players’ activity. 
This analysis seems to hold some weight, considering it’s been a little over a month since the Securities and Exchange Commission approved the trading of <a href="https://www.newsbtc.com/bitcoin-news/bitcoin-etfs-threaten-golds-dominance-as-digitalization-trends-gain-momentum/" target="_blank" rel="noopener ">spot BTC exchange-traded funds</a> in the United States. These investment products are issued and managed by some of the world’s largest financial companies, including BlackRock, Grayscale, Fidelity, and so on. 
<h2 id="strong-bitcoin-whales-show-highest-activity-since-2022-strong">Bitcoin Whales Show Highest Activity Since 2022</h2> 
Another <a href="https://www.newsbtc.com/aptos-apt/aptos-market-cap-skyrockets-574-million-worth-of-apt-tokens-set-to-shake-the-market-in-q1-2024/" target="_blank" rel="noopener ">on-chain revelation</a> that somewhat supports the argument of increased institutional participation has emerged. According to analytics platform Santiment, BTC whale activity has been heating up lately, reaching its highest level in over 20 months. 
<blockquote class="twitter-tweet" data-width="500" data-dnt="true"> 
 <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f62e.png" alt="😮" class="wp-smiley" style="height: 1em; max-height: 1em;"> Independent from the impressive volume happening with <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw" rel="nofollow">#Bitcoin</a> <a href="https://twitter.com/hashtag/ETF?src=hash&amp;ref_src=twsrc%5Etfw" rel="nofollow">#ETF</a>'s, there has been a distinct flip in the level of <a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="nofollow">$BTC</a>'s supply being held by different sized wallets: 
 <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f433.png" alt="🐳" class="wp-smiley" style="height: 1em; max-height: 1em;"> 1K-10K <a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="nofollow">$BTC</a> wallets: $12.95B added in 2024<img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f40b.png" alt="🐋" class="wp-smiley" style="height: 1em; max-height: 1em;"> 100-1K <a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="nofollow">$BTC</a> wallets: $7.89B dropped in 2024 
 (Cont) <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f447.png" alt="👇" class="wp-smiley" style="height: 1em; max-height: 1em;"> <a href="https://t.co/BL7Mrj6kLq" rel="nofollow">pic.twitter.com/BL7Mrj6kLq</a> 
 — Santiment (@santimentfeed) <a href="https://twitter.com/santimentfeed/status/1758639262558548051?ref_src=twsrc%5Etfw" rel="nofollow">February 16, 2024</a>
</blockquote> 
Data from Santiment shows that wallets with 1,000 – 10,000 BTC are on an accumulation spree, adding roughly 249,000 coins (worth about $12.8 billion) in 2024 only. However, it is worth mentioning that a lower tier of investors (100 – 1,000 BTC) has sold more than 151,000 Bitcoin since the year started. 
As of this writing, Bitcoin is valued at $51,950, reflecting a 0.6% decline in the past day. Nonetheless, the premier <a href="https://www.newsbtc.com/bitcoin-news/bitcoin-short-term-holders-647-profits-glassnode/" target="_blank" rel="noopener ">cryptocurrency has retained most of its weekly profit</a>, having gained almost 10% in the last seven days. 
<img loading="lazy" decoding="async" class="aligncenter size-medium" src="https://www.tradingview.com/x/M1TmLqTr/" alt="Bitcoin" width="2174" height="1434">

Bitcoin Bull Run: On-Chain Data Points To Declining Retail Participation

Table of Contents

NewsBTC

Other articles published on Feb 17, 2024

Embark on the Extraordinary: AfterLife's ICO Unveils Exclusive Limited Edition Bundles

OpenAI SORA : A Text-to-Video AI After ChatGPT

5 Best Altcoins to Invest in Right Now February 16 – Stacks, Helium, Jupiter

Solana’s phone preorders hit 100k; new meme coin may top Chainlink

Bitcoin developers gifted nearly $4m by Coinbase

Trump Disputes Altered Golfing Images

Join our free newsletter for daily crypto updates!