Bitcoin (BTC) On-Chain Metric Shows Interesting Twist
The market is undergoing a major rout, as seen in the 3.38% drop in the combined crypto market capitalization to $1.39 trillion, a massive correction led by Bitcoin (BTC). The premier digital currency is down by 2.56% to $36,387.35 as trading volume dropped 8.16% to $26,162,786,899.
Beyond the performance of Bitcoin (BTC), there is a subtle twist taking place on the BTC network, as spotted by crypto analytics platform, Santiment. According to the platform, Bitcoin’s wallets have recorded massive fluctuations over the past few months, and the market has been largely erratic.
🐟🐬🐳 #Bitcoin’s wallets have fluctuated during this major market-wide surge. Tons of new smaller wallets with less than 1 $BTC have flooded the network. Meanwhile, the 1-100 tier has flattened out, and 100+ tier may be in the midst of some profit taking. https://t.co/va51CcexC1 pic.twitter.com/PNZtA9ir2U
— Santiment (@santimentfeed) November 17, 2023
In a dramatic twist, addresses with less than one Bitcoin have flooded the network, as holders with one to 100 units flatten out. As Santiment observed, Bitcoin wallets holding more than 100 BTC units are in the middle of what looks like a profit-taking campaign.
The data shows that small Bitcoin addresses have hit a new high, with over 1.5 million more of these holders emerging in the past month. Those within the 1-100 Bitcoin cadre have lost 118 addresses over the past month, and large wallet holders with over 100 BTC have seen 19 addresses removed within the same time span.
Temporary nature of permanent Bitcoin (BTC) trend
The shake-up ongoing in the Bitcoin ecosystem at this time underscores current market dynamics. However, with the potential Bitcoin spot Exchange Traded Fund (ETF) approval on the horizon, we may see the inflow of both small and large-scale holders.
This highly anticipated product with a 90% positive projection is considered the predominant channel for institutional investors to make their way into the Bitcoin ecosystem. This event will also help take the price of Bitcoin to new heights, with many projecting it might usher in the next major bull market cycle.