Updated: 2026-05-08
- Bitcoin– wallets are shrinking at a record pace, analysts at Santiment noted.
- According to researchers, this trend may precede a significant increase in the Bitcoin price.
On According to According to Santiment analysts, despite the recent rise in the price of Bitcoin, the number of people owning the leading cryptocurrency is declining at the fastest rate in almost two years. In just five days, 245,000 have disappeared. Bitcoin-wallets, as many traders likely decided to lock in profits following the coin’s recent recovery.
The analytics company explained that, at first glance, the new trend may seem like a bad sign for the market. However, historical data shows that such a reduction in the number BitcoinA drop in wallets often precedes a more active rally. Some investors dump their Bitcoin, fearing the asset’s price could plummet. Others sell, believing BTC could consolidate at its current level. When these short-term investors sell their assets, they often end up in the hands of institutional investors and large holders.
Changes in the holder structure matter because long-term investors sell assets less frequently. As more bitcoins enter the wallets of large investors, they often remain inactive, which inevitably leads to a reduction in the number of bitcoins in circulation. When the supply is significantly reduced, even a small wave of new bitcoin acquisitions can significantly accelerate the asset’s price growth.
Those withdrawing funds now are passing on their positions to long-term holders, who tend to drive further growth, stated in Santiment.
For example, in June-July 2024, over 964,000 BTC wallets left the crypto market over the course of several weeks. Rather than leading to a prolonged price decline, this played a decisive role in the coin’s next major rally. If the situation repeats itself, the recent decline in supply Bitcoin-wallets may become a signal for another significant price increase.
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