Retail Traders Have Increased Bitcoin’s Value

Last Updated on April 20, 2021 by Jason

Bitcoin’s value increase right before Coinbase’s debut was largely thanks to retail traders that were excited and keen get a bit of the pie. This was shown in blockchain data, that indicated that the number of individual addresses holding coins increased from 8.96 million to more than 9 million in just five days leading up to the 14th of April.

Those with a starting balance of 1000 Bitcoin, which is also considered the ‘rich list’ decreased from 2240 to 2228. Flex Yang, CEO of Bable Finance in Hong Kong, said, “The pre-Coinbase IPO rally was driven by retail investors, in mass. We saw that the continuing decline of whales on the network further indicated that the decentralization of the Bitcoin network was really taking place.”

Glassnode

Some could argue that the diverging patterns here with large and small balance addresses might represent a separate fad of whales keeping their coins across more than one address in an attempt to prevent hackers from getting hold of their assets.

The amount of whale entities decreased to a three-and-a-half-month low of just 2228. This shows that retail investor’s high engagement started in the first quarter of this year, and is continuing to defy the market.

Glassnode

“The whale entities chart could show that smaller retail investors are purchasing Bitcoin, and large holders are selling into that rally. It could also be showing that a smaller number of large investors is buying Bitcoin, so the large entities’ concentration is increasing,” says Gavin Smith, who is the CEO of Panxora.

Smith continues by saying, “We are seeing some very large investors moving into the market, and their assets are concentrated in a small number of fund and custodial accounts. Retail involvement has been lower this cycle than in 2017.”

The easier path for cryptocurrency like Bitcoin seems to be on the higher side, because the original institutions are here to stay. As of April 18, Bitcoin was trading closer to $61,000.

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Jasonhttps://earthweb.com/
Hi! I'm the editor at EarthWeb. I have a deep interest in technology and business. I also enjoy testing products out. Contact me to be featured!

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