The cryptocurrency market has witnessed huge fluctuations throughout the year 2022. bitcoin This fluctuation led by the investors damaged the confidence of the investors. The FTX exchange, which crashed in November, dropped the BTC price to $ 15,599. Despite all these developments, individual investors saw the declines as an opportunity and preferred to increase their assets.
Will Clemente, co-founder of Reflexivity Research, pointed out that the percentage of Bitcoin supply held by retail investors has increased by 17% this year.
Noting the increase in Will Clementea tweet on the subject shared.
“It’s not perfect yet, but it’s pretty good for a 12-year existence. Things are definitely moving in the right direction. As Bitcoin supply disperses over time, fiat holdings tend to disperse to whales.”
Addresses holding 0-10 BTC account for 17.3% of the total Bitcoin supply.
What Does Retail Investor Increase Mean for Bitcoin?
Bitcoin was formulated and released for use by retail people. Satoshi Nakamoto acted for financial freedom while moving away from centralized assets. In fact, institutional investors benefited more from the asset than retail investors. Bloomberg previously reported that only 2 percent of addresses control 95 percent of Bitcoin.
A lot has changed during the bear market. With the decline in Bitcoin price, retail investors also started to buy. As the chart above shows, retail investors holding the BTC supply are at an all-time high. While some saw this as a positive sign, a few expressed their concerns.
Retail investors triggered this increase during the bear market. This kind of accumulation is likely to continue. However, economic conditions such as recession and inflation may hinder this trend. Nansen even shared a comment that he thinks the continued decline conditions may reflect in 2023.
“Given the Fed’s determination to continue tightening for longer, the main expectation for 2023 is a US recession and US stock sell-off. All these developments cryptocurrency tends to result in lower prices.”
You can follow the current price action here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.