Bitcoin Addresses Decline. Observations made by the on-chain analytics outfit Santiment reveal a decline in the total number of Bitcoin wallet addresses containing BTC throughout the previous 30 days. This may seem scary initially, but according to Santiment, it might be excellent news for investors.
According to Sentiments analysis on July 18, the number of Bitcoin addresses with a balance greater than zero has decreased by 672,510 during the past month. Due to the downward trend in Bitcoin’s price since it reached around $70,000 in early June, the fall of wallet addresses is happening simultaneously.
Bitcoin Addresses Yet to Rebound Despite Recent Recovery
The chart has not shown a considerable rebound, even if Bitcoin’s price just recovered and re-entered the $65,000 range. A few weeks later, the spot market recovered. However, according to historical trends, the number of Bitcoin holders tends to rise. There may be a silver lining, according to Santiment, who speculates that traders may think the all-time high reached in March was the pinnacle for 2024. According to the firm’s statement, “the probability of a continued rebound only increases” when major liquidations like this occur.
Given the persistent drop in Bitcoin wallet addresses, such a recovery may be possible. The number of Bitcoin holders, defined as wallets with more than zero coins, has declined precipitously. Speculators believe the all-time high (ATH) reached in March was the best the cryptocurrency might attain in 2024. Mass liquidations like these serve to heighten the likelihood of a sustained resurgence.
Meanwhile, according to data from Glassnode, the percentage of Bitcoin supply currently in profit has also decreased to 89.43%. This may not seem good, but other data shows things are looking up. The fact that OTC markets are outpacing centralized exchange markets is something that CryptoQuant creator Ki Young Ju pointed out in a recent essay, suggesting that institutions are piling in.
Large Whale Wallets
In 2018, huge whale wallets, encompassing spot ETFs and custodial wallets, collected 1.45 million Bitcoins, equivalent to over nine percent of the total supply. The incredible 100,000 BTC pouring into these whale organizations each week has exceeded the total amount for the entire year of 2021.
Although trading volume on centralized cryptocurrency exchanges has significantly decreased over the past three months, Bitcoin spot markets have recovered and increased by 12% in the past seven days. One Bitcoin is commanding approximately $64,800 at the moment.
Bitcoin Spot ETFs See Inflows for 9th Consecutive Day
Bitcoin spot exchange-traded funds (ETFs) have recently witnessed net inflows for the ninth consecutive day. On the 17th of July, $53.3475 million was deposited into these exchange-traded funds. Grayscale’s Bitcoin Trust (GBTC) experienced a net outflow of $53.8612 million on the same day.
In contrast is the net inflow of $110 million, experienced by both BlackRock’s Bitcoin ETF (IBIT) and Fidelity’s Bitcoin ETF (FBTC). Separate entities manage both of these funds. According to reports, investment items involving digital assets received $1.44 billion last week, bringing the total amount received this year to a record-breaking $17.8 billion. The last figure is much more than the $10.6 billion recorded for the full year of 2021. Bitcoin’s weekly inflows increased to $1.35 billion, making it the fifth-largest amount ever recorded for Bitcoin. On the other hand, the number of short-Bitcoin instruments that had the largest weekly outflow since April was 8.6 million dollars.
