Fear of missing out (FOMO) prevailed in the market during the second week of January as a result of Bitcoin (BTC) price rising above $20,000, particularly among holders of a modest amount of BTC.

After January 13, there was a large increase in the number of Bitcoin addresses that held 0.1 Bitcoin or less.

Since the bitcoin price skyrocketed on January 13, a total of 39.8 million new Bitcoin addresses have been created, according to data recently provided by cryptocurrency analytics firm Santiment.

In 2023, investor confidence rising again can be inferred from the growth in the number of Bitcoin addresses containing only small sums. New address construction has increased at a faster rate starting in 2023, even though growth for addresses this small was very limited and came to a sharp halt when FTX collapsed in November 2022.

The latest increase in Bitcoin addresses for amounts less than one bitcoin is the largest since November 2022, when BTC hit its cycle low of around $16,000. As a result of the price drop, smaller traders were able to purchase Bitcoin at a more favorable price. The current rise may be due to growing bullish sentiment in the market, where, in addition to Bitcoin, other altcoins have also hit multi-month highs, while the total crypto market is up more than 30%. This is the market where most altcoins have outperformed Bitcoin.

In the first week of February, the positive momentum Bitcoin had had for the month continued, as the cryptocurrency hit a new high of over $24,000. However, the $24,000 barrier turned out to be too much for the market to hold and at the time of writing, the price was trading around $23,000. Based on the opinions of market analysts, February may not be as positive as January was.

In light of the uncertainty surrounding the potential impact of upcoming US macroeconomic data on market sentiment, market professionals have issued a warning that the recent bullishness in crypto and stocks may reverse course. this month. They attributed the size of the likely future downtrend to the Federal Reserve’s interest rate hikes, which have been occurring recently.