bitcoin (BTC) is seeing what appears to be panic buying from retail investors, recent data shows, but all may not be as it seems.
in a cheep On April 4, William Clemente, Principal Insights Analyst at Blockware, revealed a large increase in the supply of BTC owned by small hodlers.
2022 retail FOMO spike is 'an outlier'
Typically referred to as "retailers", entities with 1 BTC or less are considered primary consumers rather than corporate or institutional investors.
According to figures from the chain analysis firm glass nodethese smaller players have dramatically increased their share of the overall BTC supply in 2022.
Traditionally, Clemente warned, such events have coincided with macro price highs, but given the recent behavior of BTC/USD, this time seems different than the others.
โThis is a really interesting graph. Retail (0-1 BTC) is currently buying at the second highest rate in Bitcoin history,โ he commented.
โAs for retail holdings, most of the spikes have coincided with macroeconomic highs, but on several occasions they have bought strategically. This spike is an outlier.โ
Each segment of the retail brigade, from 1 BTC to the smallest tranche of 0.001 BTC, has been increasing its market share over time, but since mid-February there has been a dramatic increase, Glassnode shows.
Now, entities holding between 0.1 BTC and 1 BTC control a total of almost 800,500 BTC.
โEither we are doomed or retail has chosen to use Bitcoin as a savings account and opt out of the fiat system. The optimist in me hopes it's the latter," Clemente added.
As Bitcoin has risen above $50,000 and out of its 2022 trading range, the amount of profitable supply held by short-term holders โ those on the market for 155 days or less โ has increased.
Short-term holders turning a profit on their investment have also accompanied price highs in recent years, data from Glassnode shows.
...While no one is Googling Bitcoin
As long as attention has in focus on the habits of investors in what is a important level of volume in the chain close to $50,000, however, mainstream attention on Bitcoin is still notoriously sparse.
Related: BTC starts 2022 all over again: 5 things to know about Bitcoin this week
google trends Data covering global search interest in "Bitcoin" shows less engagement than at any time since before last November's all-time high prices.
Not only that, but the trend remains down, Google hints, with Bitcoin in line for its lowest relative search volume in years if it continues.
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