The post Bitcoin Could See Final FOMO Wave Despite Sluggish Growth in Retail Addresses appeared on BitcoinEthereumNews.com.

Bitcoin Could See Final FOMO Wave Despite Sluggish Growth in Retail Addresses Despite observing sluggish growth in retail Bitcoin addresses, experts believe that Bitcoin could still experience its final Fear of Missing Out (FOMO) wave in the current market cycle. BinhDang, a contributor at CryptoQuant, highlighted in a recent analysis that the expansion of smaller Bitcoin addresses—those holding up to 0.1 BTC—has been minimal this year compared to the previous two cycles. This trend, attributed to a decline in global monetary flows over the past three years, poses questions about Bitcoin’s upcoming price movements. However, Dang suggests that the historical correlation between Bitcoin price increases and the rise in retail addresses driven by market excitement and FOMO indicates the potential for a final surge of retail investment in this cycle. Understanding Retail Address Growth in Bitcoin Retail Bitcoin addresses, typically holding smaller amounts of BTC (up to 0.1 BTC), are often seen as indicators of new and individual investor participation in the cryptocurrency market. Historically, a surge in these addresses has coincided with significant upward price movements in Bitcoin, fueled by retail investors’ enthusiasm and the pervasive fear of missing out on potential gains. Key Insights from CryptoQuant’s Analysis: Minimal Growth in Retail Addresses: Current Trend: This year has seen a stagnant increase in the number of retail Bitcoin addresses. Historical Comparison: Previous market cycles exhibited substantial growth in these smaller addresses, correlating with bullish price trends. Decline in Global Monetary Flows: Economic Factors: Over the last three years, there has been a general decline in global monetary flows, impacting overall investment activity. Investor Behavior: Reduced liquidity and investment capital have contributed to the limited growth in retail Bitcoin participation. Potential for a Final FOMO Wave: Market Sentiment: Despite the current sluggishness, the historical pattern suggests that Bitcoin is still…

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Filed under: News - @ October 15, 2024 8:27 am