The share of small and medium-sized investors holding Bitcoin has reached 41%, with a decline in interest among large investors
Date: 2023-09-22 Author: Dima Zakharov Categories: CRYPTO PAYMENTS
The share of small and medium-sized investors owning Bitcoin has reached 41%
Bitcoin, the world's most popular cryptocurrency, continues to attract investors of various scales. According to the analytical company Santiment, the share of investors holding up to 100 bitcoins in their accounts has reached an impressive 41.1% of the total supply of this cryptocurrency. This increase in the share of small and medium-sized investors indicates continued interest in Bitcoin and is perceived as a signal of the asset's long-term stability.
Comparing this with data on large investors who own from 100 to 100,000 bitcoins, an interesting trend can be observed. Their share has decreased to its lowest level since May and, as of September 22, stands at 55.5%. This may suggest that large players at times reduce their interest in Bitcoin, possibly due to various factors such as regulatory constraints or the search for alternative assets.
What does the increase in the share of small and medium-sized investors tell us?
The growth in the share of small and medium-sized investors owning Bitcoin can have several important implications and insights into the current state of the cryptocurrency market:
Ownership Diversification: An increase in the number of small and medium-sized investors may signal that Bitcoin is becoming more accessible to a broader audience. This could encourage more people to diversify their portfolios, including cryptocurrencies, in hopes of capital growth.
Long-Term Trust: The growth in the share of small and medium-sized investors can also indicate long-term trust in Bitcoin and blockchain technology. When more people start investing in the asset, it can create a stable base that supports the future price of Bitcoin.
What does the decrease in the share of large investors mean?
The decrease in the share of large investors can be interpreted as a temporary reduction in interest in Bitcoin among major players. This can be influenced by several factors:
Regulatory Constraints: Large investors may be more sensitive to regulatory changes and restrictions. If new laws or policies are introduced in a country that limit cryptocurrency activities, it can affect interest in Bitcoin.
Search for Alternative Assets: Large investors may also be considering other assets, such as stocks, real estate, or precious metals, as more stable and predictable long-term investments.
Market Reaction and Prospects
The market's reaction to these changes can be mixed. It's important to note that cryptocurrency markets are known for their volatility, and changes in investor ownership share can lead to short-term price fluctuations.
On September 20, analysts noted that traders were actively closing short positions on Bitcoin on centralized exchanges like Binance and Deribit. This could create conditions for a price rebound, and in fact, since the increase in short positions, the price of Bitcoin has risen by 4%.
