Bitcoin Holders Decrease by 670K, Indicating Potential Rebound: Santiment

The decline in Bitcoin wallet addresses holding BTC could be a positive sign for investors, according to Santiment.

• The number of Bitcoin addresses holding a balance of more than zero has dropped by 672,510 in the past month.
• Santiment suggests that traders may believe the March all-time high was the peak for 2024.
• However, history shows that a rebound often follows such significant selloffs, increasing the likelihood of a recovery.

The trend in wallet numbers reflects the downward price movement since Bitcoin surpassed $70,000 in early June. Although the market has risen back to $65,000, historical data indicates a lag in the increase of BTC holder numbers compared to market performance.

At present, approximately 89.43% of Bitcoin supply is profitable, a decrease from mid-June when the metric was 6.5% higher.

On a more positive note, CryptoQuant founder Ki Young Ju highlights the dominance of OTC markets over centralized exchanges, signaling institutional accumulation. Notably, whale wallets holding over a thousand coins have added 1.45 million BTC in 2024 alone, totaling 9% of the circulating supply.

In June, trading volume on centralized exchanges fell by 21.8% for the third consecutive month. Despite this, Bitcoin spot markets have rallied, with a 12% increase in the past seven days, approaching $64,800.

Interested in learning more about the future of cryptocurrency amidst financial crises? Check out our article: Could a financial crisis end crypto’s bull run?