FOMO return? 620,000 retail Bitcoin addresses created since BTC reclaimed $20,000

FOMO return? 620,000 retail Bitcoin addresses created since BTC reclaimed $20,000

The start of the year was extremely positive for Bitcoin and the entire cryptocurrency market as BTC surpassed $24,000 for the first time since August 2022.

This came after a months-long bear market and uncharacteristic price stability late last year, when the asset sat helplessly below $17,000. However, somewhat expectedly, the price increase has caught the attention of retailers.

Small investors are there again

2022 proved to be one of the worst years for Bitcoin in terms of price performance, with the asset losing around 65% of its USD value by the end. There were several reasons for this massive decline. Some included macroeconomic themes like runaway inflation, but industry collapses of former giants like Terra and FTX also hurt all participants.

Bitcoin had fallen below $17,000 at the end of 2022 and was unable to overcome this level in the first week of 2023. However, this finally happened on January 9th, and BTC has never looked back. On the contrary, it shot up to around $23,000 by the end of January, marking its best month in over a year.

Perhaps the most important moment after breaking $17,000 came when Bitcoin jumped above the 2017 ATH of $20,000. This psychological line was also the point at which retail investors decided to re-enter the space, at least according to analytics firm Santiment.

His latest tweet said that addresses holding up to 0.1 BTC had stalled in 2022, but have shot up amid the rally, growing by 620,000.

🧐 There were ~620,000 small ones #Bitcoin Addresses that have since reappeared on the network #FOMO returned on January 13th when the price reached $20,000 again. This 0.1 $BTC or fewer addresses grew slowly in 2022, but 2023 shows a return of trader optimism. https://t.co/CUAS0nV23x pic.twitter.com/wo8NBDNXs3

— Santiment (@santimentfeed) February 6, 2023

Greed back in town

Another natural development that resulted from the price increase was the change in the Fear and Greed Index. The metric, which shows investors' overall feelings toward the primary cryptocurrency, recently moved back into greed territory for the first time in ten monthsCryptoPotatoreported.

The index stayed there for the next few weeks and even came close to extreme greed a few days ago when it reached 61 (out of 100).

Bitcoin Fear and Greed Index. alternative.me

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