Bitcoin has recently experienced a market correction of around 11% in the past two weeks, leading to some volatile price movements. Despite a brief rebound to $58,000, the leading crypto asset still has a long way to go to reach its all-time high levels. On-chain data from Santiment has shown that wallets holding less than 1 BTC are aggressively accumulating, with their bitcoin supply distribution reaching 7.22%, the highest since February 7th.
While wallets holding less than 1 BTC are increasing their holdings, wallets with 1-100 BTC and those with more than 100 BTC have cooled off recently. If holders with 1-100 BTC continue to grow and those with more than 100 BTC stack the digital asset aggressively, bitcoin’s price could see a significant surge towards its peak value of $73,700.
Bitcoin and related assets have seen more outflows than inflows in recent weeks. US spot Bitcoin exchange-traded funds (ETFs) have experienced continuous outflows worth millions of dollars for almost two weeks. However, Japanese investment company Metaplanet recently increased its bitcoin holdings by acquiring 38.464 BTC worth $2 million, bringing its total holdings to 398.832 BTC valued at $26 million.
Despite the current price action of bitcoin, proponents remain optimistic about the asset’s long-term potential. MicroStrategy’s co-founder Michael Saylor has forecasted that BTC could reach as high as $13 million over the next two decades. Santiment believes that if larger buyers like MicroStrategy and major Bitcoin ETF products continue to accumulate significant BTC inflows, the value of the digital asset could experience a meteoric surge, even if wallets holding less than 1 BTC are shedding portions of their holdings.
The recent trends in the bitcoin market, including the behavior of different wallet holders and the impact of outflows and inflows, suggest a mixed outlook for the cryptocurrency. While short-term volatility and corrections may continue, the long-term potential of bitcoin remains a topic of debate and speculation among experts and enthusiasts alike.
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