Negative Indicator May Signal a Spike in Bitcoin Price

On-chain data company Santiment has reported a significant drop in the number of cryptocurrency wallets that hold Bitcoin (BTC).

Santiment’s analysts noted that this key metric is declining sharply, reflecting traders’ belief that Bitcoin may not surpass its previous all-time high of over $73,000, reached on March 14.

This pessimism has led to a mass liquidation of Bitcoin holdings, resulting in 672,510 fewer holders than a month ago.

The company suggested that such sell-offs could actually increase the probability of a future price recovery for the cryptocurrency.

👋 Bitcoin’s amount of holders (any wallets with >0 coins) have been dropping aggressively as traders still seem to believe the March ATH was as good as it’s going to get in 2024. When we see mass liquidations like this, the probability of a continued rebound only increases. pic.twitter.com/YTHEFTtfhY

— Santiment (@santimentfeed) July 17, 2024