Retail Investors Flock to Bitcoin as Exchange Reserves Decline

• Retail investors‘ interest in Bitcoin increased, with 17.1% of the total circulating supply held by them at press time.
• The number of investors in profit also increased, with 92% of short-term holders in profit.
• Exchange reserves continued to decline and the number of active addresses on the Bitcoin network decreased by 27.64%.

The recent events in the crypto market have seen an increase in the interest of retail investors in Bitcoin. According to Glassnode, at press time 17.1% of the total circulating supply was held by retail investors, representing a 4.4% increase over the past eight months. This is a positive sign for the decentralization of the Bitcoin network, as it suggests that it is not as tightly controlled by large “whale” investors.

As well as the growth in retail investors, the number of investors in profit has also seen an uptick. Data collected by Glassnode shows that the percentage of short-term holders in profit has reached 92%. This has caused some concern, however, as it could lead to increased selling pressure on Bitcoin as some of these holders may choose to cash out for a profit.

The exchange reserve is an important indicator of selling pressure and it has seen a decline, according to data from CryptoQuant. This indicates that the selling pressure may not have increased yet. Additionally, the number of active addresses on the Bitcoin network decreased by 27.64% in the last 24 hours, which could be a sign of trouble for BTC in the near future.

Overall, the increasing interest from retail investors in Bitcoin is a positive sign for the decentralization of the Bitcoin network. However, the potential for increased selling pressure due to the rising number of investors in profit and the decreasing number of active addresses is something to bear in mind.