Over the past two weeks, Bitcoin has seen a market correction of about 11% and even more dramatic swings. Although the leading crypto asset recently briefly rebounded to $58,000, its price still has a long way to go before it returns to its historical levels.
On-chain data from blockchain market intelligence firm Santiment revealed that Bitcoin wallets holding less than 1 BTC are accumulating aggressively.
Bitcoin hit $58,000 today, and retail trader sentiment is starting to look a little more positive. Wallets holding less than 1 BTC are now holding their highest supply ratio in 7 months.
However, an ideal setup for the cryptocurrency to rebound to record highs would be… pic.twitter.com/riPbS2W9qz
— Santiment (@santimentfeed) September 10, 2024
The chart above shows that these holders have increased their bitcoin supply distribution to 7.22%, the highest level since February 7. But the price of BTC will likely see a significant increase if this happens:
What could influence the price of BTC?
Santiment’s data showed that while wallets holding less than 1 BTC are accumulating more bitcoin, wallets holding 1-100 BTC and those holding more than 100 BTC have slowed down recently. Their most recent spike in supply distribution occurred on July 27 and August 14, respectively.
The market intelligence firm explained that the price of bitcoin would skyrocket and approach its peak value of $73,700 if holders of 1-100 BTC steadily increased and those with more than 100 BTC stacked the digital asset “aggressively.”
It is worth noting that bitcoin and other related assets have seen more outflows than inflows in recent weeks. U.S. spot bitcoin exchange-traded funds (ETFs), for example, have seen uninterrupted outflows worth millions of dollars for nearly two weeks.
Fortunately, Japanese investment firm Metaplanet recently increased its bitcoin stash by 38,464 BTC (worth $2 million). This acquisition brings its total to 398,832 BTC, worth $26 million. While this large purchase benefited the company’s stock price, it did little to boost the value of bitcoin.
Santiment’s theory implies that if larger buyers like MicroStrategy and large Bitcoin ETF products generate significant BTC inflows, the value of the digital asset will skyrocket, even as wallets holding less than 1 BTC lose some of their holdings.
Bitcoin supporters remain optimistic
Despite the current price action of bitcoin, its proponents believe that the asset will generate significant gains in the long term.
MicroStrategy co-founder Michael Saylor recently said that BTC will reach as much as $13 million in the next two decades.
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