Over the past few weeks, bitcoin has faced a market correction of approximately 11%, leading to increased volatility in its price movements. Despite a brief rebound to $58,000, the cryptocurrency still has a considerable distance to cover before reaching its all-time high levels.
Data from the blockchain market intelligence firm Santiment has shown that wallets holding less than 1 BTC are actively accumulating the cryptocurrency. These holders have increased their bitcoin supply distribution to 7.22%, marking the highest level since February 7th. Conversely, wallets holding 1-100 BTC and those with more than 100 BTC have decreased their accumulation activity in recent times.
Bitcoin and related assets have witnessed more outflows than inflows in recent weeks. US spot Bitcoin exchange-traded funds (ETFs) have experienced consistent outflows amounting to millions of dollars over nearly a fortnight. However, there have been instances of notable inflows as well, such as the Japanese investment company Metaplanet’s acquisition of 38.464 BTC worth $2 million, adding to its existing total of 398.832 BTC valued at $26 million.
Santiment’s analysis suggests that if larger buyers like MicroStrategy and prominent Bitcoin ETF products continue to see substantial inflows of BTC, the cryptocurrency’s value could experience a sharp surge. This would hold true even if wallets holding less than 1 BTC decide to reduce their holdings. Despite the current price fluctuations, supporters of bitcoin remain optimistic about its long-term potential. MicroStrategy’s co-founder Michael Saylor has recently predicted that BTC could reach as high as $13 million over the next twenty years.
The recent market trends surrounding bitcoin indicate a mix of accumulation patterns among different types of holders, as well as varying levels of inflows and outflows. While short-term price movements may be unpredictable, there is optimism about the cryptocurrency’s future trajectory among key industry players.
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