This Has to Happen for Bitcoin to Skyrocket Beyond $58K: Santiment
In the past couple of weeks, Bitcoin has gone through a market correction of approximately 11% and has experienced significant volatility. Although the leading cryptocurrency briefly rebounded to $58,000, it still has a considerable distance to cover before it can regain its previous all-time high levels.
Insights from on-chain data provided by blockchain market intelligence firm Santiment indicate that wallets holding less than 1 BTC are actively accumulating Bitcoin. According to Santiment, these holders now account for the highest ratio of supply in 7 months, currently standing at 7.22%, as depicted in the accompanying chart.
However, for Bitcoin to make a substantial comeback to its peak value, a specific scenario needs to unfold. Santiment’s data reveals that while wallets holding less than 1 BTC are accumulating more Bitcoin, those holding 1-100 BTC and those with more than 100 BTC have recently slowed down their accumulation. The peak supply distribution for these two categories occurred on July 27th and August 14th, respectively.
To drive the price of BTC closer to its previous peak of $73,700, Santiment suggests that holders with 1-100 BTC need to continue steadily increasing their holdings, and those with more than 100 BTC should aggressively stack the digital asset.
It is worth noting that Bitcoin and other related assets have seen more outflows than inflows in recent weeks. For instance, the United States spot Bitcoin exchange-traded funds (ETFs) have witnessed continuous outflows worth millions of dollars for nearly two weeks.
On a positive note, the Japanese investment firm Metaplanet recently acquired an additional 38.464 BTC (worth $2 million), bringing its total Bitcoin holdings to 398.832 BTC, valued at $26 million. Although this purchase benefited the firm’s stock price, it had a minimal impact on Bitcoin’s overall value.
Santiment’s theory proposes that if prominent buyers like MicroStrategy and large Bitcoin ETF products experience significant inflows, the value of Bitcoin could witness a meteoric surge, even if wallets holding less than 1 BTC reduce their holdings.
Despite the current price action, Bitcoin supporters remain optimistic about the asset’s long-term prospects. Michael Saylor, the co-founder of MicroStrategy, recently stated that BTC could potentially reach as high as $13 million in the next two decades.