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Santiment notes bullish signal with Bitcoin wallet drop

Santiment notes bullish signal with Bitcoin wallet drop

GrafaGrafa2024/11/06 11:00
By:Isaac Francis

Santiment has reported a decline in non-empty Bitcoin (CRYPTO:BTC) wallets by over 211,500 in recent weeks, interpreting this trend as a sign of fear, uncertainty, and doubt (FUD) among investors, which could signal a potential market turnaround.

Data from Santiment indicates that non-empty BTC wallets, or wallets holding any amount of Bitcoin, have fallen to 54.38 million.

Analysts at Santiment attribute this decline to market uncertainty, possibly linked to the ongoing U.S. presidential election, as investors may be moving funds out of their wallets amid volatile conditions.

In a November 4 post on X, Santiment highlighted that similar declines in the past often preceded “future bounces” in BTC prices.

Alongside Bitcoin, the USDC stablecoin also experienced a drop, with 11,600 wallets closing in a single day.

This change comes amid increased volatility in the stablecoin market, adding to the general market sentiment.

In contrast, Dogecoin (CRYPTO:DOGE) activity is on the rise.

On-chain data shows that over 46,000 new DOGE wallets were created in the past week.

Santiment suggested that the influx may be linked to Elon Musk’s support for Donald Trump, who is seen as a crypto ally, which has fueled fear of missing out (FOMO) among Dogecoin traders.

Despite recent price corrections, this interest in DOGE highlights the unique influence of meme coins in the market.

Whale activity, which often provides insights into major market movements, has also shifted.

Santiment observed a decrease in large Bitcoin transactions following a spike last week.

The report notes that this reduction does not necessarily indicate a price decline, but could signal that larger investors are waiting for retail traders to act before re-entering the market.

At the time of reporting, the Bitcoin price was $71,088.23.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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