Bitcoin
What Bitcoin holders are up to as BTC pulls back to $43,000
Although there has been an increase in accumulation from some Bitcoin wallets, will the pressure be enough to impact prices?
- Low and whale tiers of Bitcoin wallets have been accumulating over the past weeks.
- Active addresses have, however, dropped in the past few days.
Certain Bitcoin [BTC] wallets have persistently accumulated assets despite the prevailing price trend. However, the number of active addresses has been decreasing despite the accumulation of these wallets.
Bitcoin wallets see accumulation variations
According to a recent Santiment post, Bitcoin has shown diverse accumulation patterns across its lowest, mid, and high-tier wallets. The chart analysis showed a notable increase in accumulation among low-tier wallets holding 0-1 coins.
This uptrend started around October and has steadily continued. And it resulted in these wallets currently holding around 1.42 million BTCs.
Also, another category experiencing slight uptrends is wallets with 10-infinity BTCs.
Although the accumulation is less pronounced than in lower-tier wallets, the incremental uptrends are noteworthy. As of this writing, these wallets held around 11.57 million BTCs.
Source: Santiment
In contrast, mid-tier wallets have been moving in the opposite direction, with a visible reduction in holdings.
While the decrease is not drastic, it is noticeable in the chart. As of this writing, these wallets held around 6.57 million BTCs. This suggests that this particular class of wallets has been selling off its holdings amid fluctuations in the Bitcoin price.
Active Bitcoin addresses continue to decrease
The Bitcoin seven-day active addresses metric on Santiment showed a recent decrease. The chart showed that this decline started around 13th December, and a sustained downtrend has been observed.
On 13th December, the number of active addresses was about 4.9 million, reflecting a prior decrease.
At the time of this writing, active addresses had reduced to about 4.1 million. This signifies a reduction in the participation of addresses in BTC trading, possibly influenced by the price trend.
Source: Santiment
BTC volume resumes uptrend
The Bitcoin volume chart showed a decline following the decrease in active addresses. The recorded volume dropped to around $14 billion before experiencing an increase around 18th December.
Read Bitcoin (BTC) Price Prediction 2023-24
The increase in volume correlated with a rise in the price of BTC, which returned to the $43 price range. The volume was around $25.8 billion at the time of writing.
According to data from CoinMarketCap, the volume has increased by over 30% in the last 24 hours. As of the latest update, BTC was trading slightly above $43,000, showing an almost 1% increase.
