New Investors Flood Bitcoin As It Crosses $2T in Market Cap, But Leading Players Are Exercising Caution, Onchain Data Indicates.

Bitcoin’s $2 Trillion Market Cap Sparks Retail Interest, But Weak Momentum Raises Concerns of Consolidation

Bitcoin (BTC) has hit a major milestone, surpassing a $2 trillion market cap, attracting a wave of new retail investors, while seasoned market players show caution, signaling the possibility of price consolidation, according to on-chain data from Glassnode.

After Bitcoin crossed the $100,000 mark last Thursday, its market capitalization surpassed $2 trillion for the first time since January 31, according to TradingView. The price has held steady above the $2 trillion level, and analysts are eyeing a potential bullish surge following the release of U.S. inflation data later this week.

Retail investors, driven by FOMO (fear of missing out), are jumping into the market as prices rise, with Glassnode’s data showing strong demand from first-time buyers. This type of buying behavior often leads to impulsive purchases, pushing prices higher in the short term.

“BTC Supply Mapping shows that new demand remains strong. The First-Time Buyers RSI has held steady at 100 throughout the week,” Glassnode shared in a post on X.

The First-Time Buyers RSI at 100 indicates significant interest from new market participants. These buyers are engaging with Bitcoin for the first time, showing a surge in retail interest.

However, Glassnode’s data paints a less optimistic picture for other investor segments. The momentum from seasoned traders, known for capitalizing on established trends, appears weak, with the 30-day RSI of momentum buyers sitting at just 11. This suggests that the momentum-driven buying that typically fuels price rallies is absent.

“Momentum Buyers remain weak (RSI ~11), while Profit Takers are becoming more prominent. If fresh inflows slow, we could see a period of consolidation in the market,” Glassnode warned.

The data points to a possible pause in Bitcoin’s rally, with a lack of strong follow-through from experienced traders and the risk of market consolidation as new buyers cool off.