Bitcoin price fell 9.8% last week, seeing the biggest weekly drop since the second week of March. The two-week low of $ 8,630 was seen early Monday, and is traded at $ 8,765 at the time of writing this news.
Despite the price drop, the number of addresses holding a smaller amount of Bitcoin continued to increase.
According to data provided by Glassnode, the number of unique addresses holding at least 0.01 BTC rose to 8,478,746 on Sunday.
Meanwhile, the number of addresses, which was at least 0.1 BTC (roughly $ 870), also rose, reaching 3,053,004 on Friday. Both measurements regained their upward momentum after the half-life on May 11.
“Retail investors are likely to be at the stage of accumulation,” said Ki Young Ju, CEO of Blockchain analytics firm CryptoQuant.
The cryptocurrency has experienced a 30% decline in four weeks after the second halfway activity on July 9, 2016. However, the decline was deleted in the following months and prices rose to record levels until March 2016.
The growth in the small number of addresses does not necessarily represent new individual investors. Because a single user can keep the cryptocurrency at multiple addresses.
Exchanges and custody services also tend to hold Bitcoins at multiple addresses. It is therefore difficult to measure how much of the small address growth is driven by new investor involvement.
Even if the participation of small investors has increased, it is unlikely that it will have a major impact on prices, as the large players, still known as “whales”, still dominate the market. According to Glassnode data, the number of addresses with at least 10,000 BTC and 1,000 BTC has decreased in the past two weeks.
Some analysts expect Bitcoin to move between $ 8,000 – $ 8,200 in the short term. This seems likely as the cryptocurrency has broken a trend line that rises from the lowest level in March.