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Data on the channel shows that the number of small Bitcoin addresses has increased rapidly lately. This is what it can mean to the marketplace.
Bitcoin locations with 0.1 BTC. Or less have increased significantly. In numbers Not long ago.
According to data from the on-chain analytics firm Santiment, 620,000 new small addresses have appeared on the network since the 20th of last month. The relevant indicator here is the “BTC Supply Distribution,” which measures the number of Bitcoin addresses that currently fall inside each wallet group in the market.
"Wallet Groups" means the ranges that define the number of coins within portfolios belonging to a specific group that currently holds them. For example, the group of 10 to 100 pieces includes all CTB addresses that contain from 10 to 100 CTB.
If the supply allocation is applied to this wallet cohort, the indicator would indicate the total number of network addresses that meet this requirement.
The interest portfolio group here is the strip from 0 to 0.1 pieces. Here is a graph that shows the trend in the supply distribution of Bitcoin for this cohort in recent months:
Looks like the value of the metric has been climbing in recent days | Source: Santiment on Twitter
The 0-0.1 piece portfolio group consists of several cohorts (three, to be specific); their data has just been merged to display as a single group. The importance of this range is that it covers all small investors in the Bitcoin marketplace.
Many of these holders are new to the marketplace, so the data in this range can tell us about the general interest in cryptocurrency and if it is attracting users at this time.
As can be seen from the chart above, The value of the supply distribution for the 0-0.1 coin cohort shifted laterally in the second semester of 2022, demonstrating that there were not a lot of small investors introducing into the network, probably due to the tarnished evolution of market prices.
In November, following the collapse of crypto exchange FTX, the number of wallets falling into this band finally observed a rapid rise. The volatility caused by the crash and the potential trough likely drew new investors into the asset.
However, the increase did not last long, and the value of the measurement quickly returned to the year's mean values. However, since 2023, the index has experienced further growth.
Around 620,000 new addresses Bitcoin seems to be owned by these small investors since January 13 when BTC recovered the $20,000 level. This suggests that the latest rally has encouraged new investors to enter the market. Santiment notes that, contrary to in 2022, the optimism of traders has come back to the Bitcoin network this year.
As of writing, Bitcoin trades around $23,000, down by 1% in the past week.
BTC seems to have declined in the last few days | Source: BTCUSD on TradingView
