Santiment sees bullish indicator as non-empty BTC wallets decline over 211,000

Santiment data shows that there has been a significant drop in non-empty Bitcoin (BTC) wallets.

Platform analysts have interpreted this as a sign of fear, uncertainty and doubt (FUD) among crypto investors, a sentiment often associated with subsequent bullish results.

Falling portfolio may indicate bullish sentiment

According to Santiment, in the last three weeks, non-empty wallets, or those containing some amount of cryptocurrency, decreased by 211,500 to 54.38 million. This could indicate that more users are pulling their funds out of their wallets, possibly due to market uncertainty caused by the ongoing US presidential election.

However, in a November 4 post on X, the crypto data provider suggested that such a decline usually heralds “future bounces” in BTC prices, as shown by past patterns.

In addition to Bitcoin, the USDC stablecoin also saw a notable drop, dropping by 11,600 in a single day over the weekend. The drop came amid wild swings in the stablecoin market.

On the other hand, Dogecoin (DOGE), the largest meme coin by market cap, is experiencing an increase in wallet activity. In the last week, chain data showed over 46,000 new DOGE addresses.

With major DOGE supporter Elon Musk actively involved in Republican front-runner and crypto ally Donald Trump’s presidential campaign, Santiment suggested the influx of new wallets may have been driven by fear of missing out (FOMO) among traders of Dogecoin who have speculated heavily on the meme coin despite the recent price corrections.

Whales remain stable amid market volatility

The election has also led cryptocurrency traders to anticipate greater market unpredictability. Santiment observed a decrease in whale Bitcoin transactions after a surge last week, with BTC prices currently hovering around the $68,700 level.

However, he stated that a reduction in this activity did not necessarily mean a drop in prices; rather, it could be a sign that large investors are waiting for retail traders to make their moves before re-entering the market.

Meanwhile, Bitcoin’s recent performance shows resilience despite some setbacks. At the time of writing, the world’s largest cryptocurrency by market cap was trading at $68,718, down 3.1% over the past week. However, it remains strong compared to the broader crypto market, which is down 6.2%.

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