TokenAnalyst conducted a research which shows the bitcoin price has been on a rollercoaster the past year and despite the trading 20% lower than the $14,000 high, Bitcoin is still up by 200-odd% since January 1st. What we are answering in today’s altcoin news is ‘’who is behind the entire market resurgence now?’’
The retail investors are the first thing that comes in mind. Back in 2017, Bitcoin’s move from $1,000 to $20,000 was believed to be a consequence of the retail FOMO when the investors across the globe drained billions into the market as they saw the news headlines mentioning BTC. However, the data from TokenAnalyst shows that Bitcoin’s recent return to the mainstream was unlikely a result of the retail investors. Bloomberg cited the data from the blockchain analytics company TokenAnalyst and has confirmed that the fewer retail traders have been involved in the rally more than they did in 2017. The company found that the number of unique addresses that sent bitcoins to known platforms like Binance and BitMEX has been on the decline. The numbers of addresses that use the Bitfinex platform has reached a two-year low and Binance has seen a massive drop in transactions in early 2018. The co-founder of TokenAnalyst Sid Shekhar stated:
“[The low number of incoming transactions suggests a] lack of retail interest in general currently in crypto. If we go by the ‘Bitcoin as safe haven in times of recession’ narrative, the number of new users/buyers should actually be increasing.”
The Google Trends data corroborates the analysis and as seen previously the interest for the term ‘’bitcoin’’ from the start of 2017 up until now has been growing in late-2017 just when Bitcoin started reaching levels where it is currently trading. The fact that the search interest for Bitcoin is still sitting at the bear market levels implies that the investors who already know about Bitcoin are investing in these markets. The data analytics company The TIE wrote that ‘’Bitcoin was trading at its highest multiple of tweet volume ever recorded.’’ They claim that there are a few facts about the cryptocurrency that slows down the frequency which is a sign that the retail isn’t influential in this rally as it was in 2017 as we reported in the latest cryptocurrency news.
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