As a seasoned crypto investor with over a decade of experience navigating the digital asset landscape, I find myself intrigued by Santiment’s analysis and the current state of Bitcoin (BTC). Having witnessed several market cycles and corrections, I can attest to the fact that BTC is indeed a rollercoaster ride. However, as we have seen time and again, these corrections often provide opportunities for shrewd investors like ourselves to accumulate more BTC at lower prices.
Over the last fortnight, Bitcoin has undergone a market adjustment of approximately 11%, and its fluctuations have been quite pronounced. Despite briefly spiking up to $58,000, its price is still far from reaching its previous record highs.
Data from blockchain market analyst Santiment indicates a strong trend of smaller Bitcoin wallets purchasing more Bitcoin.
Today, Bitcoin soared up to $58,000, and the general mood among individual investors seems to be improving. The proportion of total Bitcoin supply held by wallets containing less than 1 BTC is currently at its highest level in the last seven months.
However, an ideal setup for crypto to rebound back to all-time high levels would…
— Santiment (@santimentfeed) September 10, 2024
As an analyst, I’ve noticed that the proportion of Bitcoin supply held by these entities has risen to 7.22%, a level not seen since February 7th, marking a potential increase in their influence over the market. If this trend continues, it could potentially trigger a significant price surge for Bitcoin.
What Could Drive BTC’s Price?
According to Santiment’s data, smaller Bitcoin wallets (holding less than 1 BTC) are accumulating more Bitcoins, while larger wallets holding between 1-100 BTC and over 100 BTC have been less active recently. These larger wallets reached their latest peak distribution on July 27th and August 14th.
As a crypto investor, I’ve learned from the market intelligence firm that Bitcoin’s price could potentially surge towards its record high of $73,700 if the number of holders with 1-100 Bitcoins continues to grow steadily. Moreover, those who already own more than 100 Bitcoins are predicted to aggressively accumulate more of this digital asset.
It’s worth mentioning that Bitcoin and similar investments have experienced more withdrawals than deposits over the past few weeks. For almost two weeks, U.S. spot Bitcoin ETFs have recorded continuous outflows totalling millions of dollars.
Notably, Metaplanet, a Japanese investment company, just added 38,464 more Bitcoins (approximately $2 million) to its Bitcoin holdings, bringing the total to around 398,832 BTC worth about $26 million. Despite this large purchase positively impacting Metaplanet’s stock price, it failed to significantly increase the value of Bitcoin itself.
According to Santiment’s theory, an increase in large-scale Bitcoin purchases by entities like MicroStrategy and big Bitcoin ETFs could lead to a substantial rise in the digital asset’s value, regardless of smaller Bitcoin wallets reducing their holdings.
Bitcoin Proponents Remain Bullish
Regardless of Bitcoin’s current fluctuations, supporters anticipate substantial growth potential for this digital asset over the long haul.
In simple terms, Michael Saylor, a co-founder of MicroStrategy, has predicted that the price of Bitcoin could potentially reach up to $13 million within the next twenty years.
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2024-09-12 07:16