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
After more than a decade of silence, two early Bitcoin wallets have suddenly sprung to life, moving thousands of BTC in a move that caught the attention of blockchain analysts and traders alike.
After briefly breaching $97,000, Bitcoin has slipped to around $94,000, retreating from the $98,000 resistance zone as traders brace for potential volatility tied to upcoming macroeconomic announcements.
As countries around the world move faster to integrate digital assets into their financial systems, the United States is keeping Bitcoin at arm’s length—especially when it comes to the idea of holding it in national reserves.
Riot Platforms, one of the largest publicly traded Bitcoin miners in the U.S., cashed out $38.8 million worth of Bitcoin in April as mining margins tighten across the sector.