March 29, 2024

Glassnode: retail investors buy BTC amid falling prices

Bitcoin price reached two-week low, affecting buying interest among retailersinvestors.

Over the past seven days, the price of Bitcoin has decreased by9.8%, marking the worst single-week drop since mid-March. After hitting a two-week low of $8,630 on Monday, Bitcoin is now trading at $8,773, down 11% from its post-halving high of $9,960 on May 18.

Despite the price drop, the number of addresses containing small amounts of BTC continues to grow. The number of addresses holding at least 0.01 BTC has risen to an all-time high.

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According to Glassnode data, the number of uniqueaddresses holding at least 0.01 BTC rose to 8,478,746 on Sunday. At the same time, the number of addresses with 0.1 BTC or more also increased to a record level of 3,053,004 addresses last Friday.

“Retail investors are likely to be in an accumulation phase,” &#8212; said the CEO of the analytics company CryptoQuant, Ki Young Ju.

However, the growth in the number of addresses with a smallthe amount of BTC does not necessarily indicate the arrival of a large number of new users in the industry, as one investor can store BTC in several places.

In addition, growing interest in cryptocurrency amongretail investors are unlikely to have much impact on the price as the market is still dominated by large players &#8212; "whales". According to Glassnode, the number of addresses containing more than 1,000 BTC and 10,000 BTC has decreased over the past two weeks.

Moreover, activity in the options marketsuggests that a more severe fall in Bitcoin could be on the way. “Traders Buy Put Options at a Loss,” &#8212; said Swissquote Bank's head of digital assets, Chris Thomas.

A put option is a bearish bet.for cryptocurrency, and the call option is bullish. A losing put option has a strike price that is lower than the market price of the underlying asset. Thomas expects the price of Bitcoin to enter the $8,000 &#8212; range in the short term. $8,200.

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