Key Points
- According to Santiment, the significant decrease in Bitcoin wallet addresses could indicate a potential market rebound.
- Despite the decline in wallet addresses, Bitcoin’s spot markets have shown resilience with prices hovering around $64,800.
Santiment, an on-chain analytics platform, has reported a significant decrease in the number of Bitcoin wallet addresses holding BTC. This could suggest a potential market rebound. On July 18, it was reported that there had been a reduction of 672,510 Bitcoin holders with a balance of more than zero BTC.
Market Rebound Possibilities
Santiment has suggested that some traders might believe that the market peak in March was the highest point for 2024. However, the firm has noted that large sell-offs are usually followed by market recoveries. They stated, “When we observe such mass liquidations, the likelihood of a rebound increases.”
This trend has been observed since Bitcoin last reached over $70,000 in early June. Although Bitcoin prices have recovered to around $65,000 recently, the number of BTC holders has not shown a significant rebound yet, which typically follows spot market recoveries by several weeks.
Market Indicators and Institutional Activity
Data from Glassnode shows that at the current price, 89.43% of Bitcoin’s supply is in profit, down by 6.5% from mid-June when BTC was near $70,000. However, other indicators suggest a positive outlook. Ki Young Ju, the founder of CryptoQuant, pointed out that over-the-counter (OTC) markets are currently overshadowing centralized exchanges, which indicates strong institutional accumulation.
Ju reported that whale wallets, including those holding more than a thousand coins, have added 1.45 million BTC this year, bringing their total to 1.8 million BTC, about 9% of the circulating supply. He also highlighted that the weekly inflow to these whale entities is now higher than the total for the entire year of 2021.
Trading Volumes and Broader Market Trends
Despite the decline in wallet addresses, Bitcoin spot markets have shown resilience, with prices hovering around $64,800 at the time of writing. Trading volumes on centralized crypto exchanges dropped by 21.8% in June, marking the third consecutive month of declines.
According to a report by CCData on July 17, the combined spot and derivatives volume across all centralized exchanges stood at $4.2 trillion in June, a 53% drop from the $9 trillion peak in March. Additionally, open interest across crypto derivatives exchanges fell by 9.7% due to liquidations triggered by a sharp drop in Bitcoin and other crypto assets.
Bitcoin’s Future
In a recent update, popular crypto analyst Michaël van de Poppe shared an optimistic outlook for Bitcoin’s performance in the latter half of 2024. He emphasized that increasing inflows from exchange-traded funds (ETFs) could drive Bitcoin price higher.
Van de Poppe noted that Bitcoin saw significant net inflows from ETFs, exceeding $400 million last month, which indicates strong institutional interest and stability around the $65,000 mark. He suggested that Bitcoin’s price could potentially reach $100,000 in the near future, supported by ongoing institutional investments.
