Bitcoin Wallets Show Diverse Accumulation Amid Crypto Price Drop
Bitcoin Holders and Their Activities During the Price Drop to $43,000
Although there was an increase in the accumulation of some Bitcoin wallets, the question arises whether the pressure is sufficient to influence the prices. It’s interesting to observe that both low and “whale” levels of Bitcoin wallets have been accumulating in recent weeks. However, the number of active addresses has decreased in recent days.
Bitcoin Wallets and the Different Accumulation Patterns
According to a recent post by Santiment, Bitcoin shows different accumulation patterns in its lowest, middle, and highest wallets. The chart analysis showed a remarkable increase in accumulation for low wallets holding 0-1 coins. This upward trend began around October and has continued steadily, resulting in these wallets currently holding about 1.42 million BTCs.
Another category experiencing slight upward trends are wallets with 10-infinite BTCs. Although the accumulation is less pronounced than in lower wallets, the incremental upward trends are noteworthy. At the time of writing this article, these wallets held about 11.57 million BTCs.
In contrast, middle wallets are moving in the opposite direction, with a visible reduction in holdings. While the decline is not drastic, it is noticeable in the chart. At the time of writing this article, these wallets held about 6.57 million BTCs. This suggests that this particular class of wallets has been selling off their holdings as Bitcoin prices fluctuated.
Active Bitcoin Addresses Continue to Decrease
The metric of active Bitcoin addresses over seven days on Santiment showed a recent decline. The graph showed that this decline started around December 13th, and a sustained downward trend was observed. On December 13, the number of active addresses was about 4.9 million, reflecting a previous drop. At the time of writing this article, the active addresses had dropped to about 4.1 million. This suggests a reduction in the participation of addresses in BTC trading, possibly influenced by the price trend.
BTC Volume is Increasing Again
The Bitcoin volume chart showed a decline following the drop in active addresses. The recorded volume dropped to about $14 billion before experiencing a rise around December 18th. The increase in volume correlated with a rise in the BTC price, which returned to the $43 price range. The volume was about $25.8 billion at the time of writing this article. According to data from CoinMarketCap, the volume has increased by over 30% in the last 24 hours. In the latest update, BTC was traded slightly above $43,000, representing an increase of almost 1%.
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Source: Santiment
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