- Large investors drove Bitcoin’s price surge, boosting holdings from 16.2M to 16.4M BTC by January.
- Retail holdings fell from 1.75M to 1.69M BTC, reflecting decreased participation amid price volatility.
- Bitcoin’s price recovery in January aligned with increased large investor activity, surpassing $100K again.
Data from Cryptoquant indicates that investment activity caused changes in the Bitcoin market between October and January. By January, large investors’ holdings had grown from 16.2 million Bitcoin in late October to 16.4 million Bitcoin.
Contrarily, smaller retail investors have decreased their Bitcoin holdings over the same period. Previously, the number of Bitcoin holdings by small investors was 1.75 million, and now it stands at 1.69 million, corresponding with the price fluctuations of Bitcoin; it hit near $100,000 sometime in mid-November before popping around to various numbers.
Large Investors Drive Growth
Large investor holdings exhibited a steady climb, reaching 16.35 million BTC by early November. During the same period, this growth coincided with the price of Bitcoin skyrocketing to above $100,000; however, by mid-December, investor holdings started to fall slightly, stabilizing at about 16.25 million BTC.
Retail investors mirrored the opposite trend. Initially, their holdings rose to 1.74 million BTC in early November but dropped by mid-December. Consequently, retail holdings reached 1.68 million BTC by early January.
Price Volatility Reflects Investor Behavior
Bitcoin’s price movement mirrored the activity of both investor classes. Started at 85000$ in late October moved to above 100000$ in mid-November and patently operated in December. Besides, the sharp volatility in the Bitcoin price accompanying the changes in the Bitcoin holdings, suggesting very active market participation from both retail and alleged large investors.
From mid-December to early January, large investors demonstrated consistent activity. Additionally, they maintained holdings of nearly 16.25 million BTC. Retail investors, however, continued reducing their positions, contributing to the declining trend in small-scale participation.
Recovery in January
January marked a recovery phase. Bitcoin’s price rebounded, surpassing $100,000 once again. Consequently, large investor holdings increased slightly to over 16.3 million BTC. Retail holdings also showed minor growth, nearing 1.7 million BTC after weeks of consistent decline.
The alignment between Bitcoin’s price recovery and increasing holdings highlights the dominant influence of large investors. Besides, retail investor activity, although secondary, reflected the broader market sentiment.
