Market intelligence platform Santiment reported a significant decline in Bitcoin wallets with a balance, dropping by 566,000 since mid-June. This decrease has sparked discussions about potential bullish signals and the health of the cryptocurrency market.
Similarities to Past Trends: The drop in wallet numbers is reminiscent of a similar event in January 2024, which preceded a notable price increase for Bitcoin. Santiment suggests this could be a sign of weak-handed investors exiting the market due to fear, uncertainty, and doubt (FUD). This “clean-out” could pave the way for a stronger market foundation with more committed holders.
Current Market Analysis: Despite the recent drop in wallet numbers, IntoTheBlock’s data reveals that a significant portion (83%) of Bitcoin holders are still in profit. Additionally, large investors (“whales”) hold a substantial amount (12%) of Bitcoin, indicating continued institutional interest.
Also Read: Bitcoin ETF Inflows Rise 143% in a Week: Can They Reclaim $1 Billion Glory?
Long-Term Trend and Selling Pressure: While long-term holders (70%) haven’t budged, data shows a consistent trend of long-term investors selling their holdings throughout 2024. This selling pressure is further amplified by recent exchange inflows exceeding outflows by over $1 billion.
Looking Ahead: The decrease in Bitcoin wallets presents a mixed picture. While it aligns with historical bullish patterns, it also coincides with ongoing selling pressure. Whether this signals a market bottom or a continuation of the downtrend remains to be seen.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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