This Declining Bitcoin Metric Could Point To A Bullish Future For BTC Price: Sentiment

Bitcoin briefly touched $66,000 as it continued its recovery after a rough couple of weeks. Despite this rebound, the data reveals that some investors are still reluctant to return, as they seem to believe that “March’s ATH was as good as it will get in 2024.”

Interestingly, Santiment suggests the potential for a rebound soon.

Aggressive Bitcoin Headline Down But Bounces On The Horizon?

According to the latest analysis by on-chain analytics platform Santiment, there has been a significant drop in the number of Bitcoin holders, with addresses containing a balance greater than zero dropping by 672,510 over the past month. This trend suggests that traders are losing confidence, apparently convinced that the all-time high set in March 2024 represents the high of the year.

This massive liquidation of Bitcoin holdings often occurs when investors are looking to cut losses or take profits, indicating bearish sentiment in the market. However, Santiment explained that these massive sales could, in fact, signal a potential turnaround.

Historically, when the market experiences massive liquidations, it often sets the stage for a potential bounce, as oversold conditions create opportunities to buy at lower prices, thereby increasing the likelihood of a recovery in the value of the crypto asset.

Bitcoin OTC markets overflow CEX

CryptoQuant founder Ki Young Ju recently highlighted the dominance of over-the-counter (OTC) markets over centralized exchanges (CEX). Whale wallets, including those associated with spot ETFs and custody services, have amassed 1.45 million BTC this year, bringing their total holdings to 1.8 million BTC.

This is in stark contrast to the inflows seen in 2021, where approximately 70,000 BTC were added over the course of the entire year. The executive noted that the influx has increased to 100,000 BTC per week. This dramatic increase shows the growing influence of large-scale whaling entities in the Bitcoin market.

“This is not an internal shuffling of existing custody portfolios. The balance of old whale portfolios (>155d) has not decreased, while the balance of new whale portfolios (

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