Bitcoin has recently undergone a market correction of around 11%, causing some turbulence in its price movements. Despite briefly rebounding to $58,000, the leading cryptocurrency still has a ways to go before reaching its all-time high levels. However, on-chain data from Santiment has shown an interesting trend – wallets holding less than 1 BTC are aggressively accumulating. This group of holders has increased their bitcoin supply distribution to 7.22%, the highest it’s been since February 7th.
While small wallet holders are stacking more bitcoins, wallets holding 1-100 BTC and those with more than 100 BTC have shown a different pattern. The data suggests that these larger holders have cooled off recently, reaching their peak supply distribution on July 27th and August 14th, respectively. Santiment believes that for bitcoin’s price to soar closer to its peak value of $73,700, holders with 1-100 BTC need to steadily grow their holdings, and those with more than 100 BTC should start stacking the digital asset more aggressively.
Recent weeks have seen more outflows than inflows in the bitcoin market. For example, United States spot Bitcoin exchange-traded funds (ETFs) experienced continuous outflows worth millions of dollars for nearly two weeks. However, there have been some positive developments as well. Japanese investment company Metaplanet recently acquired 38.464 BTC (worth $2 million), increasing their total holdings to 398.832 BTC, valued at $26 million. While this purchase positively impacted the firm’s stock price, it did little to boost bitcoin’s overall value.
Despite the current price fluctuations, many proponents remain optimistic about bitcoin’s long-term potential. MicroStrategy’s co-founder Michael Saylor, for instance, has boldly stated that BTC could reach as high as $13 million in the next two decades. The key, according to Santiment’s analysis, lies in larger buyers like MicroStrategy and significant Bitcoin ETF products netting substantial BTC inflows. If this were to happen, the digital asset’s value could experience a meteoric surge, even if wallets holding less than 1 BTC decide to shed portions of their holdings.
While the recent market correction and volatility may have caused some concern among investors, the underlying trends suggest that there is still a significant amount of accumulation happening among small wallet holders. The mixed signals from different wallet sizes, coupled with the ongoing outflows and inflows in the market, indicate a complex and dynamic landscape for bitcoin. However, with optimistic projections for its long-term growth potential, the future of bitcoin remains a topic of great interest and speculation in the financial world.
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