Leading cryptocurrency Bitcoinfell below $40,000 on weekdays due to the ongoing selling pressure.
BTC’As the selling pressure continued, there were also large liquidations in small Bitcoin wallets.
At this point, the on-chain data provider examining the liquidation in Bitcoin wallets Santiment announced that there has been a significant decrease in the total number of Bitcoin wallets.
Pointing out that the latest decline in BTC wallets was the fastest decline since the beginning of October, when the rise began, Santiment stated that this situation is an indication of the impatience among investors.
In the last four days alone, more than 487,000 wallets holding 1 BTC or less each were liquidated, according to the data.
Referring to historical data, Santiment stated that historical models show that such rapid declines in wallet numbers are often associated with capitulation, a phase that may precede a jump in market price.
At this point, Santiment considered the recent disappointment in the market performance of ETFs in the past two weeks, following the approval of 11 ETFs, as a significant factor in the liquidation of wallets.
“The total amount of Bitcoin wallets is falling at the fastest rate since early October. This time the crowd shows a level of impatience similar to that of the October crash.
In the last four days alone, more than 487,000 wallets holding 1 BTC or less each were liquidated.
History tells us that this is typically a sign of capitulation and can lead to a jump in market prices after small investors become optimistic again about crypto as an investment vehicle. “
📉👋 The amount of total #Bitcoin wallets have been declining at their fastest rate since early October (just before the major #crypto #bullcycle started). The crowd is showing a similar level of importance this time around with over 487K wallets holding 1 $BTC or pic.twitter.com/K6LwSWYUYM
— Santiment (@santimentfeed) January 26, 2024
*This is not investment advice.
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