Retail BTC Ownership Increases In 2022 Despite Market Crisis – Report
According to Glassnode, an on-chain analytical platform, the amount of BTC in possession of retail traders has hit a new peak record of 17%. Meanwhile, retail traders are traders who have less than 10 BTC.
Despite the bearish market, the amount of Bitcoin held by retail investors in 2022 has hit a new record. Also, long-term BTC holders hold the largest amounts of the leading digital asset in 2022.
Retail Traders Continue To Amass BTC
Glassnode’s chart revealed that the number of retail BTC holders had increased greatly in the last month. On December 20th, Will Clemente, the co-founder of Reflexivity Research, stated:
“Although this is not yet perfect, it is sold for a 12 years asset. So Bitcoin is currently moving in the right direction.”
Retail investors are the first persons to sell off during a bearish market or increased FUD. This occurred at the beginning of 2022, just like it did in 2018 after the crackdown on ICOs.
In addition, retail investors are the last to stockpile assets during a bullish run. Usually, they buy crypto assets when the market has finally settled.
On the other hand, institutional and long-term investors are known to accumulate crypto when the market hits rock bottom. For example, Coinbase Institutional recently published a report stating that long-term investors hold 85% of BTC in supply.
Glassnode also confirmed the Coinbase report, adding that holders’ supply hit 13.9 million BTC this month. Also, the on-chain analytics firm said long-term BTC holders still hold 72.3% of BTC in supply.
Investors Will Prefer “High-quality” Assets Over Altcoins In 2023 – Coinbase
According to Glassnode, long-term holders keep an asset for at least 180 days. Despite the volatility in the market, these indicators prove that there is still a significant amount of confidence and conviction in BTC.
Also, Coinbase predicts that investors would prefer “high-quality” assets to altcoins next year. The report added that institutional investors would favor ETH and BTC in the first few months till the end of the liquidity crunch.
According to CoinGecko, the total market valuation is about $844 billion after dropping below $1 trillion months ago. However, some analysts are optimistic that the market will improve in 2023; others believe nothing will change.
Some analysts believe the sideways trading and low volatility will continue in 2023. Furthermore, Coinbase researchers stated that “in the initial months of 2023, we estimate a low likelihood that the success of cryptocurrencies would detach from that of traditional assets.”
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