Bitcoin back above $42K as new investors give in to FOMO
- Addresses that made their first transaction in Bitcoin also swelled.
- Bitcoin bounced back in the last 24 hours on favorable news from the Fed.
With sentiment around Bitcoin [BTC] improving by the day, more and more investors were seen including the world’s largest cryptocurrency in their portfolios.
New investors enter Bitcoin market
As per AMBCrypto’s analysis of Glassnode’s data, number of addresses holding a positive amount of Bitcoins was more than 50.7 million as of this writing.
Nearly 2.45 million addresses have been added since the rally began in mid-October, indicating that many were allured by high returns.
Moreover, as the rally sustained its momentum, addresses that made their first transaction in Bitcoin also swelled as seen below.
Bitcoin’s resilience in the bear market and its clean image amidst an increasingly hawkish U.S. regulatory climate has attracted investors from traditional market.
In addition, the excitement surrounding the spot exchange-traded funds (ETFs) approvals and the approaching halving have increased Bitcoin’s legitimacy, much like a traditional store of value.
Large investors also show affinity
Whale investors have also shown significant interest lately. Since mid-October, entities holding at least 1,000 Bitcoins have grown considerably, AMBCrypto discovered using Glassnode data.
For the curious, entities here refer to a group of addresses that are owned by the same network entity.
Strong buying activity from whales is often considered positively in crypto circles in terms of the asset’s future price swings.
Bitcoin makes a strong recovery
While adoption was clearly on the rise, some of the investors might have been left disappointed due to the sharp correction observed earlier in the week.
More than 34,000 BTCs flew into different crypto exchanges over the last week as short-term holders locked in gains. This caused BTC’s price to dip below $41,000.
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However, BTC bounced back in style, revisiting $43,000, on favorable news from the U.S. Federal Reserve on interest rates. As of this writing, the king coin was exchanging hands at $42,799, up 4.43% in the last 24 hours.
In a statement shared with AMBCrypto, Shivam Thakral, CEO of Indian cryptocurrency exchange BuyUcoin, said,
“Fed kept the interest rate unchanged and hinted that it could go for several rate cuts next year, bringing cheer to the trading community as it will boost liquidity in the market and spark economic activity in several sectors. The market is expected to sustain the momentum in the coming weeks.”