"Bitcoin's New Investors Control 50% of Market Wealth Amid Volatility"

Bitcoin's new investors, those who have held the cryptocurrency for 24 hours to 3 months, now control 50.2% of the market's wealth, according to data from Glassnode. This figure is lower than the peak levels observed in previous cycles, specifically 85% in 2018 and 74% in 2021. Notably, this latest figure comes at a time when Bitcoin is experiencing heightened volatility, having surged past $105,000 on Sunday and then declining to a multi-week low of under $98,000 on Monday.

On Tuesday, Bitcoin posted a modest recovery, rising 2.02% over the past 24 hours. Despite this short-term gain, the cryptocurrency saw a 1.76% drop over the past week. Meanwhile, on-chain data suggested there is still room for further accumulation among new Bitcoin investors. The Realized Cap HODL Waves metric indicated that the proportion of wealth held by new investors remains relatively low, with investors holding Bitcoin for 24 hours to three months controlling 50.2% of the market's wealth. Historically, this figure has spiked during previous market cycle peaks, such as in 2018 and 2021, when new investors held approximately 85% and 74% of the wealth, respectively. Essentially, the current levels suggest Bitcoin has not yet reached an accumulation peak comparable to previous cycles.

A separate metric suggested that new Bitcoin holders are increasing their market share. A report from CryptoQuant highlighted that the holdings of new Bitcoin whales, defined as entities controlling over 1,000 BTC for less than 155 days, have steadily risen. These large investors tend to be more active in trading and responsive to market conditions. As of Monday, January 27, these new whales accounted for 60% of the realized cap of large market participants, up from approximately 17% in July 2021 when Bitcoin traded at around $55,000. The rise in whale accumulation suggests that demand among major investors remains strong despite the recent volatility.

An analysis by Ali Martinez indicated that Bitcoin remains in a heated zone but continues to hold structural support levels. According to Martinez, Bitcoin faced rejection at an upper pricing band, shown in red, which stood at $1