Santiment: Bitcoin Loses 566K Wallets, Hinting at Market Bottom

Santiment reports a drop of 566K Bitcoin wallets since June 15, hinting at a potential bullish pattern as seen in historical market trends.

Bitcoin’s recent market activity indicates a significant shift in investor behavior. According to Santiment, a market intelligence platform, the number of Bitcoin wallets with a balance has dropped by 566,000 since June 15, leaving 54.09 million wallets.

👋 There are currently 54.09M non-empty Bitcoin wallets on the network, dropping by a net of 566K since June 15th. Patient bulls should be pleased with this, as self-liquidating wallets from impatient non-believers is a sign of FUD-causing bottoms, just like we saw in January. pic.twitter.com/h2jK9YvCf9

— Santiment (@santimentfeed) July 9, 2024

This decline is reminiscent of a similar event in January, which preceded a notable price increase. Citing this data, the market intelligence resource noted that this could indicate a potential bullish pattern.

Net Drop and Historical Context

Santiment’s chart highlights the net decrease in Bitcoin holders, pointing out that such reductions often signal a market bottom. Historical data shows that in January and February, a similar drop in holders occurred before a substantial price rise.

The annotation on the chart underscores that “weak hands” are exiting the market, driven by fear, uncertainty, and doubt (FUD). This behavior is considered bullish by some traders, as it indicates a clean-out of less committed investors, potentially leading to a stronger market foundation.

In addition to Bitcoin, Santiment provides data on other major cryptocurrencies. Ethereum currently has 124.61 million non-empty wallets, showcasing its broad user base. Meanwhile, XRP has 5.23 million, Cardano 4.48 million, and Chainlink 721,430 non-empty wallets.

83% of Bitcoin holders are in profit

Elsewhere, IntoTheBlock’s data show 83% of Bitcoin holders are in profit, while only 13% are experiencing losses. Large holders, or “whales,” possess 12% of Bitcoin, indicating a significant concentration of wealth.

Bitcoin Market Overview | IntoTheBlock

Furthermore, with Bitcoin price currently standing at $57,701, 70% of Bitcoin holders have maintained their positions for over a year, demonstrating strong long-term investment. High-value transactions exceed $97.15 billion over seven days.

Meanwhile, exchange inflows amount to $7.47 billion, and outflows sit at $6.38 billion over seven days. This shows that exchanges have witnessed over $1.09 billion in net inflows in the past week, further compounding the existing selling pressure on Bitcoin.

Recall in late June, long-term Bitcoin holders sold off 200,000 BTC, equivalent to $10 billion in May and $1.2 billion in June. This reduction in holdings has been consistent throughout 2024, reflecting a broader trend of long-term investors liquidating their positions.

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