Renewed Interest in Bitcoin: Small Holders and Institutional Investors Drive Growth

On-chain data shows a significant increase in small Bitcoin holders, indicating a surge in renewed interest and optimism for the cryptocurrency. According to a recent report, wallet addresses holding at least $100 in Bitcoin are nearing all-time highs. This retail growth is happening in parallel with institutional adoption, driven by Bitcoin ETFs, which have seen their holdings double from 650,000 BTC to over 1,250,000 BTC throughout 2024.

Small Holders Drive Retail Growth

The growing number of wallet addresses holding at least $100 in Bitcoin highlights a renewed interest in the market, as more participants join in. Market metrics support this retail momentum, with 86% of Bitcoin currently showing profit, suggesting widespread positive returns across wallet sizes.

Accumulation rates have accelerated, with CryptoQuant data showing a monthly expansion of 228,000 BTC. However, accumulator addresses have reached record acquisition rates of 495,000 BTC monthly.

Institutional Investors Drive Price Gains

CryptoQuant data has revealed that large investors are driving Bitcoin price gains since the US election. Holdings have grown from 16.2 million to 16.4 million BTC, while small investors reduced theirs from 1.75 million to 1.69 million.

ETF Launches Change the Institutional Landscape

The institutional sector has been impacted by ETF launches, notably BlackRock’s iShares Bitcoin Trust (IBIT). The ETF has accumulated over $50 billion in assets within 11 months, marking the most successful ETF launch in history among BlackRock’s global offerings.

Technical Indicators Show Bullish Sentiment

Technical indicators show that the MVRV Z-Score is remaining below levels typically associated with market tops. The Crypto Fear and Greed Index maintains a healthy bullish sentiment, with a 30-day simple moving average at 75%.

Tips for investors:

  • Keep an eye on on-chain data to gauge market sentiment and potential price movements.
  • Monitor the growth of small holders and institutional investors to understand market trends.
  • Consider the impact of ETF launches on the institutional landscape and Bitcoin price.

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