Bitcoin Wallet Counts Drop Sharply: What It Means for the Market
The number of Bitcoin wallets holding actual BTC has sharply decreased over the past month, according to Santiment, a blockchain analytics firm.
This significant drop in addresses, reported on July 18, might actually signal a positive shift for Bitcoin’s future.
Santiment noted that the number of wallets holding any Bitcoin has plummeted by 672,510 recently, suggesting substantial sell-offs. However, the firm views this as a promising sign, interpreting the drop as indicative of a potential upcoming rally. They compare this trend to a similar drop seen last year, which preceded the current bull market.
👋 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
Ki Young Ju, founder of Cryptoquant, supports this bullish perspective. He highlighted that over-the-counter markets have overshadowed centralized exchanges, with wallets holding over 1,000 BTC—encompassing custodial accounts and newly introduced Bitcoin ETFs—growing their holdings by 1.5 million BTC since January.
READ MORE: BlackRock CEO Larry Fink Hails Bitcoin: The New Digital Gold?
Eric Balchunas from Bloomberg noted a significant $300 million inflow into Bitcoin ETFs on July 17, with BlackRock’s ETF leading with $260 million. This exceeds earlier predictions that the ETF market would see $12-$15 billion in inflows within the first year after U.S. SEC approval. Instead, it reached $16 billion in just six months.
In contrast, trading volumes on centralized exchanges (CEXs) have fallen. CCData reports a 53% decrease in trading volume for both spot and derivatives, dropping from $9 trillion in March to $4.2 trillion by June. This decline is partly attributed to market anxieties related to potential liquidations by Mt. Gox creditors.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
