As Santiment analytics disclose an accelerating decline in wallets holding one or more Bitcoin, the cryptocurrency industry has gone abuzz.
Crucial for gauging mood in the market, this indicator has been progressively dropping as traders become less optimistic that may rise beyond its historic high of $73,750, which it last touched on March 14. The general feeling in the market is that people don’t think Bitcoin will reach a new all-time high this year.
Largely due to “fear, uncertainty, and doubt” (FUD), smaller investors of the asset tend to sell off their holdings, a pattern that is reminiscent of previous market cycles.
It is interesting to note that after a large number of smaller buyers sell their Bitcoin, bigger holders usually start to buy more. This could set the stage for future rallies. At first glance, this trend seems worrying, but it could be setting the stage for the next bull market.
👋 Bitcoin’s amount of holders (any wallets with >0 coins) have been dropping aggressively as traders still seem to believe the March ATH was as good as it’s going to get in 2024. When we see mass liquidations like this, the probability of a continued rebound only increases.
— Santiment (@santimentfeed)
Bitcoin: Past Patterns Point To A Recovery
Santiment notes that historical patterns show that big declines in wallet activity frequently precede notable price rebounds. Long-term investors recognize that these times of smaller holdings’ capitulation typically 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 there were a month ago, data by Santiment show. This could mean that the price is about to go up again.
As of this writing, the price of Bitcoin is $64,894, down significantly from its most recent peaks but still in a strong position that gives investors optimism.
Bitcoin is now trading at $64,034. Chart:
Expert Forecasts Fuel Hope
Reiterating his optimistic stance on Bitcoin, well-known proponent of the cryptocurrency and CEO of Jan3 Samson Mow has added another level of fascination to the present state of the market.
Mow, who is well-known for his unwavering support of the leading cryptocurrency, has set a lofty goal: he believes that Bitcoin might soar to $1 million in the coming year.
The bull run starts at $0.1M.
This is just the unwinding of the fakery to make retail think is over.
— Samson Mow (@Excellion)
According to him, if Bitcoin reaches $100,000, it will spark off a bull run that would take the cryptocurrency to previously unheard-of heights.
At the same time, the company with the most bitcoins, is also feeling upbeat. “Bitcoin to the Moon,” the most recent comment on X of its co-founder and executive chairman, Michael Saylor, supported Mow’s positive outlook and gave institutional investors more reason to be hopeful.
Bernstein experts, for their part, have raised their estimates for Bitcoin’s price. They now think it could reach $200,000 by 2025 and even $1 million by 2033.
They say this is because of the rise in demand for spot and the recent halving of the block reward, which reduces the number of new Bitcoins coming onto the market.
Featured image from Shutterstock, chart from TradingView
They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.
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Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).
Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!
So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).
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Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.
Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.
So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.
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