The feeling of fumo among bitcoin investors has reached its highest level in the last 5 years; Ascending sign?

Data on the inventory of small investors in the bitcoin market show that these individuals are increasing their inventory at a significant pace. In the past, the increase in micro-investors’ stocks occurred mainly in periods when the price was close to its cross-sectional peaks; But will bitcoin reach a new peak this time?

According to the Coin Telegraph, the bitcoin market is currently being bought quickly by small investors, but things may not be as they seem. On April 4, William Clemente, a senior analyst at the Blockware Institute, tweeted to increase the bitcoin holdings of small investors.

Institutions are generally considered “micro-investors” and the dominant market flow, with a bitcoin balance of one or less, and oppose large corporate investors.

These small investors have dramatically increased their share of the total bitcoin supply in 2022, according to Glassnode, a long-range analysis company.

Clemente said such events have coincided in the past with sharp price increases; But given the recent behavior of bitcoin prices, this time the situation seems different.

He said:

This chart is really interesting. Micro-investors (addresses with holdings between 0 and 1 bitcoin) trade in a situation where their holdings have reached their second highest of all time. Looking at the inventory chart of these addresses, it can be seen that there is a jump in this chart [معمولاً] Coincided with a sharp rise in prices; But in many cases they have bought strategically [و درگیر احساس فومو نشده بودند]. That is why the recent increase seems unusual.

Fumo sentiment among bitcoin investors has reached its highest level since 2017
Bitcoin microinventory inventory chart.

According to Golsnood, each group of micro-investors, which is categorized on the basis of inventory from 1 bitcoin to 0.001 bitcoin, has increased its market share over time; But since mid-February (late February) there has been a dramatic increase. Currently, addresses with shares between 0.1 and 1 contain a total of about 800,500 bitcoins.

Clemente added:

Either we are doomed, or micro-investors have chosen to use bitcoin as a savings account and a way to abandon Fiat’s system. Optimism gives me more hope for the latter.

Fumo sentiment among bitcoin investors has reached its highest level since 2017
Inventory chart of addresses that have between 0.1 and 1 bitcoin.

As bitcoin reaches nearly $ 50,000 and is out of trade by 2022, the share of “profitable supplies” of short-term holders (those who have been on the market for 155 days or less) has also increased; This means that more units are already available to these people, which are purchased at a lower price than current prices.

Golsnood data show that the change in the stock status of short-term bitcoin holders from loss to profitability has been accompanied by rising prices in recent years.

Fumo sentiment among bitcoin investors has reached its highest level since 2017
Graph of profits and losses of shares in the portfolio of long-term and short-term bitcoin investors.

What does Google Data say?

At a time when the price of bitcoin is approaching $ 50,000, investor activity and online trading volume are being closely monitored; But public attention to bitcoin is still clearly low.

Google Trends data on global search for the keyword “Bitcoin” shows the lowest interest in searching for bitcoin before the price collapse in November 2021.

According to Google data, this trend is still declining, and if the downward trend continues, bitcoin will be among the lowest relative demand in recent years.

Also read: Can the price of bitcoin be predicted by checking Google searches?

Fumo sentiment among bitcoin investors has reached its highest level since 2017
Google data on the number of changes in bitcoin keyword searches over the last 5 years.

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