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Bitcoin Addresses Plunge, But Institutional Interest Surges

Bitcoin faces a decline in wallet addresses but sees significant institutional accumulation. Despite market turbulence, large investors are boosting their holdings, indicating potential resilience and a positive outlook for the leading cryptocurrency.

1 min 26 secJuly 21, 2024
Bitcoin Addresses Plunge, But Institutional Interest Surges

After a turbulent period, Bitcoin appears to be stabilizing. This is despite a notable decrease in Bitcoin wallet addresses. What’s driving this trend? What does it mean for the future of the leading cryptocurrency?

 

Recently the number of Bitcoin wallet addresses has seen a sharp decline. Data from Santiment, reveals that approximately 6,72,510 addresses with non-zero balances have vanished. Could this indicate a loss of confidence among investors? Historically significant liquidations often precede market rebounds. This pattern increases the chances of a recovery. 

 

"When we see such massive liquidations, the likelihood of continued recovery only increases." -  Ki Young Ju founder of CryptoQuant

 

As of mid-July, the percentage of Bitcoin supply in profit dropped to 89.43%. This is a 6.5% decrease from mid-June when Bitcoin prices hovered around $70000. Despite this downward trend, other indicators remain positive. They hint at potential market bounce-back.

 

 

Institutional Accumulation: Whales on the Hunt

While smaller investors may be panicking. Institutional investors are quietly accumulating Bitcoin. Wallets holding more than a thousand bitcoins have increased their holdings by 1.45 million BTC this year. This brings their total to 1.8 million BTC. Ki Young Ju founder of CryptoQuant, highlights that these massive flows to institutional wallets demonstrate sustained demand from large investors. In 2021 whales were accumulating about 70,000 BTC per year. Today they are acquiring 100,000 BTC per week.

 

This trend should reassure those who view Bitcoin not only as a digital currency but as a significant societal phenomenon.

 

Bitcoin continues to surprise. Its resilience and ability attract both skeptics and optimists. Despite the decrease in wallet addresses. Institutional accumulation suggests a positive outlook for cryptocurrency. It reinforces its status as a major player in the financial world.

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