Bitcoin Wallets Exodus: What’s Happening?

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.