Addresses Holding Bitcoin Continue to Decline, Indicating Potential Rebound: Santiment
The number of Bitcoin wallet addresses holding BTC has been decreasing over the past month, according to data from onchain analytics firm Santiment.
While this may initially seem concerning, Santiment suggests that it could actually be good news for investors.
On July 18, Santiment reported that the number of Bitcoin addresses with a balance greater than zero has dropped by 672,510 over the past month.
The decline in wallet addresses aligns with the downtrend in Bitcoin’s price since it peaked above $70,000 in early June.
Despite a recent recovery that pushed BTC back above $65,000, the chart has yet to demonstrate a significant rebound.
However, historical patterns indicate that increases in BTC holder numbers tend to follow spot market recoveries with a delay of several weeks.
Santiment highlights a potential silver lining in the situation, suggesting that traders may believe the all-time high achieved in March was the peak for 2024.
“When we see mass liquidations like this, the probability of a continued rebound only increases,” the firm wrote.
The ongoing decline in wallet addresses holding BTC could set the stage for such a rebound in the future.
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