As Bitcoin‘s price receded to below $75,000, wallets holding between 1 and 100 BTC have collectively increased their balances by a net 14,207 BTC over the past two weeks. On-chain analytics firm Santiment views this accumulation, occurring amid heightened selling pressure, as a potential sign of an impending recovery. Contrarily, the total number of Bitcoin wallets with a positive balance has continued its downward trajectory during the same period.
Small Wallets Lead Bitcoin Accumulation
According to Santiment data, wallets holding between 1 and 10 BTC have gathered 10,076 BTC in just two weeks. Similarly, wallets with balances ranging from 10 to 100 BTC have added 4,131 BTC over the same period.
Santiment notes that these investors often exhibit more patience compared to those with smaller holdings. They tend to accumulate Bitcoin when market panic rises and reduce their positions when prices show strong recovery.
Decline in Positive Balance Wallets Continues
The number of Bitcoin wallets with a balance stood at 59.99 million on October 16, dropping by approximately 108,700 since. Santiment interprets the price drop below $75,000 as possibly testing the patience of smaller investors.
The firm suggests that prolonged price declines may cause some smaller holders to panic and liquidate their positions, while others consolidate their funds into fewer wallets. Santiment highlights that periods of small investor sell-offs have historically preceded significant crypto market rallies. Should the number of positive-balance wallets continue to decline while Bitcoin stabilizes, the signal for a recovery might strengthen.
Large Transfers Emerge from BitGo and Binance
In a notable on-chain transaction, 1,489 BTC were transferred from BitGo to a new wallet with the address starting bc1qga. This transaction, valued at approximately $111.34 million, occurred about 40 minutes prior to the sharing of this update.
In a similar manner, a total of 1,002.86 BTC were moved from Binance to three newly created wallets within 24 hours before the report, with the value of these transfers around $75 million.
If Bitcoin maintains its position around $75,000 and wallets holding between 1 and 100 BTC continue to accumulate, the potential for the asset to bounce back to $78,000 and subsequently $80,000 could indicate a short-term bottom. Conversely, if the price falls beneath recent lows and those same wallets shift to selling, the bullish signal implied by accumulation could weaken.
