Over the past two weeks, Bitcoin has seen a market correction of approximately 11%, leading to volatile price fluctuations. Despite a brief rebound to $58,000, Bitcoin’s price still remains below its all-time high levels. On-chain data from Santiment indicates that wallets holding less than 1 BTC are actively accumulating the cryptocurrency, with their distribution reaching 7.22%, the highest since February 7th.
Santiment’s data suggests that Bitcoin’s price could experience a significant surge if wallets holding 1-100 BTC continue to grow steadily and those with more than 100 BTC aggressively accumulate the digital asset. However, wallets in both the 1-100 BTC and >100 BTC categories have seen reductions in distribution after reaching peak levels on July 27th and August 14th, respectively.
In recent weeks, there have been more outflows than inflows of Bitcoin and related assets. For example, U.S. spot Bitcoin exchange-traded funds (ETFs) have witnessed continuous outflows worth millions of dollars for nearly two weeks. On the other hand, the Japanese investment company Metaplanet recently acquired 38.464 BTC (valued at $2 million), increasing its total Bitcoin holdings to 398.832 BTC (worth $26 million).
Despite the current price action of Bitcoin, proponents believe that the cryptocurrency will see significant growth in the long term. MicroStrategy’s co-founder, Michael Saylor, has even predicted that Bitcoin could reach as high as $13 million in the next two decades. This optimistic outlook is based on the belief that larger buyers like MicroStrategy and major Bitcoin ETF products will continue to accumulate substantial amounts of BTC, driving up the digital asset’s value.
While Bitcoin has recently faced a market correction and increased volatility, there are still signs of optimism within the cryptocurrency space. The behavior of different wallet sizes, the flow of funds in and out of Bitcoin, and long-term predictions from industry experts all contribute to a complex and dynamic landscape for the leading cryptocurrency. As investors navigate these fluctuations, it’s essential to stay informed and adapt to the ever-changing market conditions.