As Santiment’s analytics reveal an accelerating decline in wallets holding one or more bitcoin, the cryptocurrency industry has become agitated.
This indicator, crucial for gauging market sentiment, has been falling steadily as traders become less optimistic. bitcoin” target=”_blank” rel=”nofollow”>bitcoin could surpass its all-time high of $73,750, which it last touched on March 14. The general sentiment in the market is that people do not believe bitcoin will hit a new all-time high this year.
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Largely due to “fear, uncertainty and doubt” (FUD), small investors in the asset tend to sell their holdings, a pattern reminiscent of previous market cycles.
It is interesting to note that after a large number of smaller buyers sell their bitcoins, larger holders usually start buying more. This could set the stage for future increases. At first glance, this trend seems worrying, but it could be setting the stage for the next bull market.
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The number of bitcoin holders (any wallet with >0 coins) has been falling aggressively as traders still seem to believe that the March ATH was the best it will ever get in 2024. When we see massive sell-offs like this, the likelihood of a continued rally only increases. image.twitter.com/YTHEFTtfhY
— Santiment (@santimentfeed) twitter.com/santimentfeed/status/1813663694464889187?ref_src=twsrc%5Etfw” rel=”nofollow”>July 17, 2024
bitcoin: Past patterns point to a recovery
Santiment notes that historical patterns show that large declines in portfolio activity often precede notable price rallies. Long-term investors recognize that these periods of capitulation of smaller holdings often provide ideal conditions for future price spikes.
People who use bitcoin have seen similar patterns in the past, where the number of active wallets dropped a lot and then prices recovered again. There are 672,510 fewer bitcoin owners now than a month ago, data from Santiment shows. This could mean the price is about to rise again.
At the time of writing, bitcoin is priced at $64,894, significantly down from its most recent peaks but still in a strong position that gives investors optimism.
Experts' forecasts fuel hope
Reaffirming his bullish stance on bitcoin, well-known cryptocurrency advocate and CEO of Jan3, Samson Mow, has added another level of fascination to the current state of the market.
Mow, known for his unwavering support for the leading cryptocurrency, has set an ambitious goal: he believes bitcoin could hit $1 million next year.
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Bullish rally starts at $0.1 million.
This is just the end of the forgery to make the retail trade think. twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow”>#bitcoin it's over.
— Samson Mow (@Excellion) twitter.com/Excellion/status/1813388205770822010?ref_src=twsrc%5Etfw” rel=”nofollow”>July 17, 2024
According to him, if bitcoin hits $100,000, it will trigger a bull run that would take the cryptocurrency to heights never seen before.
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At the same time, bitcoin-standard-for-even-better-retur” target=”_blank” rel=”nofollow”>MicroStrategy, The company with the most bitcoins is also optimistic. “bitcoin to the Moon,” the most recent comment on x from its co-founder and CEO Michael Saylor, backed up Mow’s positive outlook and gave institutional investors more reasons to be hopeful.
Bernstein experts, meanwhile, have raised their estimates for the price of bitcoin: they now believe it could reach $200,000 in 2025 and even $1 million in 2033.
They say this is due to increased demand for spot. bitcoin-etf-balances-hit-all-time-high/” target=”_blank” rel=”nofollow”>bitcoin ETF and the recent halving of the block reward, which reduces the amount of new Bitcoins coming to market.
Featured image from Shutterstock, chart from TradingView
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