In the past two weeks, bitcoin has experienced a market correction of around 11% and even more evident volatile rides. Although the leading crypto asset recently briefly rebounded to $58,000, its price still has a long way to go before it regains its all-time high levels.
On-chain data from the blockchain market intelligence firm Santiment revealed that bitcoin wallets holding less than 1 BTC are aggressively accumulating.
Bitcoin has reached as high as $58K today, with sentiment among retail traders beginning to look a bit more positive. Wallets with <1 BTC now hold their highest ratio of supply in 7 months.
However, an ideal setup for crypto to rebound back to all-time high levels would… pic.twitter.com/riPbS2W9qz
— Santiment (@santimentfeed) September 10, 2024
The chart above shows that these holders have increased their bitcoin supply distribution to 7.22%, the highest since February 7th. But BTC’s price will likely see a significant surge if this happens:
What Could Drive BTC’s Price?
Santiment’s data showed that while wallets holding below 1 BTC are stacking more bitcoins, wallets holding 1-100 BTC and those with more than 100 have cooled off recently. They saw their most recent peak supply distribution on July 27th and August 14th, respectively.
The market intelligence firm explained that bitcoin’s price will soar closer to its peak value of $73,700 if holders with 1-100 BTC steadily grow and those owning more than 100 BTC stack the digital asset “aggressively.”
Notably, bitcoin and other related assets have seen more outflows than inflows in recent weeks. The United States spot Bitcoin exchange-traded funds (ETFs), for instance, saw non-stop outflows worth millions of dollars for nearly two weeks.
On the bright side, the Japanese investment company Metaplanet recently boosted its bitcoin stash by 38.464 BTC (worth $2 million). The acquisition brought its total to 398.832 BTC, valued at $26 million. Although this big buy benefited the firm’s stock price, it did little to bolster bitcoin’s value.
Santiment’s theory entails that if bigger buyers like MicroStrategy and large Bitcoin ETF products net significant BTC inflows, the digital asset’s value will see a meteoric surge, even if wallets holding less than 1 BTC shed portions of their holdings.
Bitcoin Proponents Remain Bullish
Despite bitcoin’s current price action, proponents believe that the asset will unlock significant increments in the long term.
MicroStrategy’s co-founder Michael Saylor recently declared that BTC will soar to as high as $13 million in the next two decades.
The post This Has to Happen for Bitcoin to Soar Past $58K: Santiment appeared first on CryptoPotato.