Recent on-chain data indicates a rise in small Bitcoin holders, reflecting increased interest and optimism among retail investors, as reported by Binance.
This growth in retail participation aligns with rising institutional adoption, particularly following the approval of BTC ETFs, which led to a significant increase in holdings from 650,000 BTC to over 1,250,000 BTC in 2024.
On-chain data reveals a growing number of wallet addresses holding at least $100 in Bitcoin, nearing all-time highs.
This surge highlights renewed interest as more participants join the market.
Read more ???? https://t.co/OEC1rWbetN pic.twitter.com/ArBK8zSN5Z
— Binance (@binance) January 26, 2025
Retail involvement in Bitcoin is increasing, coinciding with strong holder behaviour, as over 50% of BTC has remained untouched for more than two years. Market metrics show 86% of Bitcoin is profitable, indicating positive returns. Accumulation is rising, with a monthly growth of 228,000 BTC, and the accumulator addresses the acquisition of 495,000 BTC per month.
The launch of Bitcoin ETFs, especially BlackRock’s iShares Bitcoin Trust (IBIT), has notably influenced the institutional sector, gathering over $50 billion in assets within 11 months, marking BlackRock’s most successful ETF launch. Technical indicators show the MVRV Z-Score is below typical market peak levels, while the Crypto Fear and Greed Index indicates strong bullish sentiment, with a 30-day simple moving average of 75%.
CryptoQuant data shows that large investors have been the primary drivers behind Bitcoin’s price increases since the US election, with their holdings rising from 16.2 million to 16.4 million BTC. In contrast, smaller investors have reduced their holdings from 1.75 million to 1.69 million BTC.
Large investors are driving Bitcoin price gains since the US election.
Holdings grew from 16.2M to 16.4M BTC.
Meanwhile, small investors reduced theirs from 1.75M to 1.69M. pic.twitter.com/jwu88GLJl7
— CryptoQuant.com (@cryptoquant_com) January 25, 2025
This Binance report aligns with findings from Bybit and Block Scholes, which noted that Bitcoin perpetual swap open interest remained stable during the year-end expirations, defying expectations of price volatility. Traders exercised caution, avoiding heavy reliance on perpetual contracts to hedge expiring options. The report also highlights a steep implied volatility term structure for BTC options, with volatility expected to stay at 57% over one week. Most expired open interest hasn’t been reinvested, resulting in a neutral call-put balance and limited leverage in the options market compared to December 2024.
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