Largest Buy Volume Since 2020 Drives Surge in BTC and Alt Coin Price to the Upside

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 Bullish Rally: Largest Buy Volume since 2020 drives surge in BTC and Alt Coins. Data suggests that small-volume buyers are just as interested in $48,000 bitcoin as they were in $3600 Bitcoin.

Bitcoin sheds ‘dumb money’ as retail buys most BTC since March 2020 crash

Markets News

Regular investors can now buy Bitcoin (BTC), which is $48,000, as data confirms that it has been on the rise since March 2020.

Willy Woo, a statistician, tweeted Dec. 14 that he noticed a new trend in the Bitcoin market that was absent for more than 18 months.

Retail adds Bitcoin like it’s March 2020

BTC/USD crashed to $3,600 on March 2020. This was a popular investment option for those who were able to and willing to invest. Now, this phenomenon is back.

Since March 2020, the balances of wallets that hold 1 BTC or less have seen their highest levels. This is usually indicative of small-scale investors.

The circumstances are the same: coronavirus fears, macro market jitters, and central bank policy. However, the main difference at the end 2021 is that Bitcoin now costs $48,000 instead of $3,600.

However, interest rates are rising if the retail accumulation data are accurate.

“The last time retail bought the dip this hard was at the bottom of the COVID crash,” Woo commented.

As Cointelegraph reported this week, larger existing hodlers continue to exhibit mixed behavior at current price levels. Despite selling by some, the top tier — whales — are more cautious about divesting away from BTC.

“Smart” vs. “dumb” money hits all-time high

Meanwhile, the proportion of long-term investors has reached a record high versus short-term market participants.

Related: Bitcoin price dip may end Wednesday as Bitfinex bids hint at Fed ‘buy the news’ plans

According to the so-called “Smart Money Gap” indicator, consisting of data from on-chain analytics firm Glassnode, there has never been a greater disparity between the amount of BTC held by “smart” and “dumb” money — long-term and short-term buyers.

Throughout Bitcoin’s history, local peaks in the metric have heralded the start of price bull runs, signifying local price bottoms.

Bitcoin Smart Money Gap annotated chart. Source: Twitter

The numbers support the narrative that Bitcoin’s near 40% come-down from $69,000 all-time highs “flushed out” speculative market bets.

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