The number of Bitcoin wallet addresses holding BTC has been falling over the past month. However, according to Santiment, this could be good news for investors.
On July 18, the onchain analytics firm reported on X that the number of Bitcoin (BTC) addresses holding a balance of more than zero has decreased by 672,510 over the past month.
Santiment suggested traders may be thinking that the March all-time high “was as good as it’s going to get in 2024.” However, there was a silver lining as there is usually a rebound following the selloff, it added.
“When we see mass liquidations like this, the probability of a continued rebound only increases.”
The declines have mirrored price action which has been downtrending since BTC last topped $70,000 in early June.
The chart has not shown a rebound despite markets recovering to reclaim $65,000 this week. However, previous increases in BTC holder numbers have lagged spot markets by several weeks.
Meanwhile, at the current price, the percentage of Bitcoin supply in profit has declined to 89.43%, according to data from Glassnode.
There has been a fall of 6.5% for this metric since mid-June when BTC prices were last around the $70,000 level.
Other metrics paint a more bullish picture. As observed by CryptoQuant founder Ki Young Ju who posted on July 18, OTC (over-the-counter) markets are “overwhelming” centralized exchange markets which is a sign of institutional accumulation.
He added that whale wallets with more than a thousand coins, including spot ETFs and custodial wallets, added 1.45 million BTC this year bringing the total to 1.8 million BTC, or roughly 9% of the circulating supply.
He exclaimed that the weekly total inflow to these whale entities is now higher than the total for 2021.
“In 2021, about 70K BTC flowed in over the year; now, it's 100K BTC “weekly.” I repeat. 100K BTC weekly,”
Trading volume on centralized crypto exchanges fell by 21.8% in June, marking a third consecutive month of declines, as reported by Cointelegraph on July 18.
However, Bitcoin spot markets have recovered, gaining 12% over the past seven days. Prices are hovering around $64,800 at the time of writing.