Bitcoin Wallet Addresses Decline: Good News for Investors?
Recently, data from on-chain analytics firm Santiment revealed that the number of Bitcoin wallet addresses holding BTC has been decreasing over the past month. While this may sound alarming at first, Santiment suggests that this trend could actually be positive news for investors. The decline in wallet addresses seems to align with the downtrend in Bitcoin’s price since it peaked above $70,000 in early June.
Bitcoin Addresses Yet to Rebound Despite Recent Recovery
Despite a recent recovery that pushed BTC back above $65,000, the chart has yet to show a significant rebound. Historical patterns indicate that increases in BTC holder numbers tend to follow spot market recoveries with a delay of several weeks. Santiment has highlighted a potential silver lining in this situation, suggesting that traders may believe the all-time high achieved in March was the peak for this year.
- Recent recovery pushed BTC back above $65,000
- Chart has yet to demonstrate a significant rebound
- Increases in BTC holder numbers typically follow spot market recoveries
- Traders may believe March ATH was the peak for this year
Decrease in Bitcoin Supply in Profit
Meanwhile, there has been a decline in the percentage of Bitcoin supply in profit, which currently stands at 89.43% according to Glassnode data. While this might seem discouraging, other metrics paint a more bullish picture. For instance, over-the-counter (OTC) markets are dominating centralized exchange markets, indicating institutional accumulation.
Institutional Accumulation in OTC Markets
- OTC markets dominate centralized exchange markets
- Indication of institutional accumulation
- Institutional wallets have acquired 1.45 million BTC this year
- Weekly inflow to whale entities surpasses total for all of 2021
Bitcoin Spot Markets Experience Recovery
Despite a decline in trading volume on centralized crypto exchanges for the third consecutive month, Bitcoin spot markets have experienced a recovery, gaining 12% over the past seven days. At the time of writing, Bitcoin’s price hovers around $64,800.
Bitcoin Spot ETFs See Inflows for 9th Consecutive Day
Bitcoin spot ETFs have recorded net inflows for the ninth consecutive day, with a total net inflow of $53.3475 million on July 17. Notably, Grayscale’s Bitcoin Trust (GBTC) observed a net outflow of $53.8612 million on the same day.
- Bitcoin spot ETFs see net inflows for the ninth consecutive day
- Total net inflow of $53.3475 million on July 17
- Grayscale’s Bitcoin Trust (GBTC) sees net outflow of $53.8612 million
Record Inflows in Digital Asset Investment Products
Digital asset investment products recorded inflows totaling $1.44 billion last week, pushing year-to-date inflows to a staggering $17.8 billion, surpassing the $10.6 billion recorded in all of 2021. Bitcoin attracted the fifth-largest weekly inflows on record, totaling $1.35 billion.
Hot Take: Crypto Market Trends Signal Positive Developments 📈
As the crypto market experiences fluctuations in wallet addresses holding BTC and changes in profit percentages, various trends are indicating positive developments for the future. Institutional accumulation, spot market recoveries, and record inflows in digital asset investment products are painting a bullish picture, despite short-term fluctuations. Stay informed and watch how these trends unfold to make informed decisions in the crypto space.
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