Key Findings:
- Around 729,400 Bitcoin wallets emptied in the last month.
- Bitcoin’s “Total Amount of Holders” has been declining since January 20th, while Ethereum and Tether’s have risen.
- The US SEC’s approval of spot Bitcoin ETFs may have influenced this trend.
Bitcoin Wallets Exodus:
- Data from Santiment, an on-chain analytics firm, reveals a significant decline in Bitcoin wallets holding a non-zero balance.
- This trend contrasts with Ethereum and Tether, whose “Total Amount of Holders” continues to increase.
Possible Explanations:
- The recent approval of spot Bitcoin ETFs in the US may have played a role.
- ETFs provide an indirect way to invest in Bitcoin through traditional markets, appealing to investors unfamiliar with crypto wallets and exchanges.
- As a result, some Bitcoin holders may have shifted to ETFs, leading to the observed decline in active wallets.
Implications for Other Cryptocurrencies:
- Santiment suggests that similar trends may occur for other cryptocurrencies once ETFs become available for them.
- Currently, Ethereum and Tether are at all-time highs in terms of the number of holders.
Bitcoin Price Movement:
- Bitcoin’s price has been relatively stable in the past week, showing sideways consolidation.
