It's turning out to be a bullish start to the month for Bitcoin (BTC) as the leading cryptocurrency continues to enjoy a positive on-chain outlook. With several favorable developments taking place, Bitcoin is gaining traction as the broader market sentiment recovers. In this latest update, we take a closer look at the latest developments driving Bitcoin's upward momentum.
Bitcoin Fear and Greed Index Maintains Upbeat Mood for Two Straight Weeks
As mentioned, Bitcoin is making headlines as investors seem to have regained confidence in the digital asset following a surge in prices in the past few weeks. The Bitcoin Fear and Greed Index, which measures market sentiment by analyzing social signals, has reached a notable high of 61, signaling strong bullish sentiment.
The index had fallen to 25 in December 2022 after the FTX implosion but has steadily climbed to the neutral zone, hitting 52 on January 15. Eventually, the index tapped its highest point since November 2021 on January 30, marking a high of 61.
The recent price hike has been recorded across other digital assets as well, with Ethereum (ETH), the leading altcoin, also recording significant gains.
As of the date of this report, Bitcoin is being traded at $23,030, which is a price increase of over 40% since the start of the year. The Fear and Greed Index, which ranges from 0-100, with scores of 0–30 indicating “extreme fear” (orange) and scores of 70–100 indicating “extreme greed” (green), has provided traders with a reliable tool to gauge the current market sentiment around the benchmark cryptocurrency.
Bitcoin Records Surge in Retail Traders
A surge in small Bitcoin addresses has been reported, according to on-chain data from analytics firm Santiment. Over 620,000 new small addresses have entered the network since January 20th, which is a significant increase. These small addresses belong to investors who own 0.1 bitcoin and below and are considered a crucial indicator of general interest in the cryptocurrency market.
The growth in small addresses since the start of 2023 suggests that the latest rally in Bitcoin prices has encouraged new investors to enter the market. This is in contrast to 2022, when trader optimism was lacking in the Bitcoin network.
50% Of BTC Haven’t Moved in Two Years
Another piece of data released by popular crypto analyst "Documenting Bitcoin" showed that half of all Bitcoin, worth approximately $86.4 billion, has not been moved for the last two years. This represents about 50% of the current supply of 19.28 million bitcoins in circulation.
In conclusion, the increase in small addresses and unmoved coins suggests a renewed interest in Bitcoin, and the current rally may attract more new investors to the market. These data points provide valuable insights into the current state of the cryptocurrency market and can help inform investment decisions.
BTC’s Present Price Action
Though BTC appears to have run out of bullish steam, the price appears resolute on not yielding the $23,000 zone. BTC has been fighting to keep the $23,000 price tag since facing rejection at the $24,000 top. This could signal that the flagship cryptocurrency could begin an ascent to the $24,000 mark soon, as bulls target the critical $25,000 round figure.
BTC Statistics Data
BTC Current Price: $23,030
BTC Market Cap: $446.7B
BTC Circulating Supply: 19.2M
BTC Total Supply: 21M
BTC Market Ranking: #1
This article should not be taken as financial advice. It is essential to conduct research before making any investment decisions.