- Bitcoin’s low volatility managed to attract both retail and large investors that have been capitalizing on the opportunity to buy into the cryptocurrency
- Miner selling pressure reduces as revenues continue to grow
Recent data from Glassnode, suggested that Bitcoin’s [BTC] volatility declined significantly over the last month. This low volatility attracted both retail and large investors that have been capitalizing on the opportunity to buy into the cryptocurrency.
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One of the reasons for the same could be that on previous occasions when Bitcoin experienced low volatility, such as in April 2019, and August 2020, BTC rallied in the short term and witnessed a surge in its price.
Whales and retail investors join hands
The interest from large and retail investors was indicated by the data provided by Glassnode. For instance, the number of addresses holding 0.1 or more coins were seen to reach an all-time high of 4,212,110. Furthermore, the number of addresses holding 10 or more coins reached a two-year high of 155,417.
Although interest from both large addresses and retail investors may be beneficial for BTC in the short term, a large concentration of Bitcoin being held by BTC whales could make retail investors vulnerable to sudden price movements. These movements could be a direct outcome of whale behavior.
The mining angle
Miner interest could also increase along with retail interest. This was because miner revenue was on the rise. According to data provided by Glassnode, the total miner revenue for Bitcoin increased from 573 BTC to 978 BTC over the last few weeks. A growing miner revenue could reduce the selling pressure on Bitcoin miners.
Furthermore, the mining hashrate, which measures the processing power of the Bitcoin network, also increased by 0.87% over the past month. A high hahsrate suggests that the BTC network continues to be very secure.
Another positive for the mining industry would be Hut8 Mining Corp’s latest announcement. Which stated that it mined 3,568 Bitcoin in 2022, increasing its reserves by 65% in 2022 to 9,086 BTC. Hut8 stated that it plans to stay true to its HODL strategy, and deposited 100% of the self-mined Bitcoin into custody in December.
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In terms of market performance, Bitcoin’s market cap dominance grew over the last three months. At press time BTC’s market cap dominance was 39.192% according to Messari.
Overall, the decline in Bitcoin’s volatility could be a positive sign for the cryptocurrency going forward. Furthermore, a growing interest from both retail and large investors, as well as the increasing miner revenue, could be indicators of an optimistic future for BTC.