Mass Exodus? Over 672,000 Bitcoin Holders Drop Out Amid Market Shifts
July 19 2024 - 8:30AM
NEWSBTC
As Santiment analytics disclose an accelerating decline in wallets
holding one or more Bitcoin, the cryptocurrency industry has gone
abuzz. Crucial for gauging mood in the market, this indicator has
been progressively dropping as traders become less optimistic that
Bitcoin may rise beyond its historic high of $73,750, which it last
touched on March 14. The general feeling in the market is that
people don’t think Bitcoin will reach a new all-time high this
year. Related Reading: THORChain (RUNE) Primed For Big Gains,
Analyst Eyes $20 Milestone Largely due to “fear, uncertainty, and
doubt” (FUD), smaller investors of the asset tend to sell off their
holdings, a pattern that is reminiscent of previous market cycles.
It is interesting to note that after a large number of smaller
buyers sell their Bitcoin, bigger holders usually start to buy
more. This could set the stage for future rallies. At first glance,
this trend seems worrying, but it could be setting the stage for
the next 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 Bitcoin: Past Patterns
Point To A Recovery Santiment notes that historical patterns show
that big declines in wallet activity frequently precede notable
price rebounds. Long-term investors recognize that these times of
smaller holdings’ capitulation typically provide ideal conditions
for future price spikes. People who use Bitcoin have seen similar
patterns in the past, where the number of active wallets dropped a
lot and then prices recovered again. There are 672,510 fewer
Bitcoin owners now than there were a month ago, data by Santiment
show. This could mean that the price is about to go up again. As of
this writing, the price of Bitcoin is $64,894, down significantly
from its most recent peaks but still in a strong position that
gives investors optimism. Expert Forecasts Fuel Hope Reiterating
his optimistic stance on Bitcoin, well-known proponent of the
cryptocurrency and CEO of Jan3 Samson Mow has added another level
of fascination to the present state of the market. Mow, who is
well-known for his unwavering support of the leading
cryptocurrency, has set a lofty goal: he believes that Bitcoin
might soar to $1 million in the coming year. The bull run starts at
$0.1M. This is just the unwinding of the fakery to make retail
think #Bitcoin is over. — Samson Mow (@Excellion) July 17, 2024
According to him, if Bitcoin reaches $100,000, it will spark off a
bull run that would take the cryptocurrency to previously
unheard-of heights. Related Reading: Injective (INJ) Breaches Key
Resistance, Setting Stage For 1,350% Boom — Analyst At the same
time, MicroStrategy, the company with the most bitcoins, is also
feeling upbeat. “Bitcoin to the Moon,” the most recent comment on X
of its co-founder and executive chairman, Michael Saylor, supported
Mow’s positive outlook and gave institutional investors more reason
to be hopeful. Bernstein experts, for their part, have raised their
estimates for Bitcoin’s price. They now think it could reach
$200,000 by 2025 and even $1 million by 2033. They say this is
because of the rise in demand for spot Bitcoin ETFs and the recent
halving of the block reward, which reduces the number of new
Bitcoins coming onto the market. Featured image from Shutterstock,
chart from TradingView
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