Despite recent price fluctuations, Bitcoin wallet expansion continues to surge, indicating a rise in crypto adoption.
Bitcoin Wallet Activity Amidst Volatility
Amidst increased Bitcoin volatility, there is a surge in wallet activity, revealing market sentiment and potential future directions. Notably, the daily chart appears promising after recently closing the $79 fair value gap prior to the latest surge.
Retail Investors Drive Wallet Expansion
The past month has seen an increase of 50K in Bitcoin wallets, significantly driven by retail investors. Data from Santiment shows an additional 37,390 wallets now hold less than 0.1 Bitcoin, while 12,754 more wallets hold between 0.1 and 100 Bitcoin. The growing interest in smaller wallets indicates a potential increase in Bitcoin adoption and its long-term value.
Large Wallets Decline Indicating Profit Taking
However, the narrative includes a decrease in large wallets holding at least 100 Bitcoin by six, indicating profit-taking among major players capitalizing on recent price gains, introducing temporary selling pressure. Nonetheless, the overall growth of smaller wallets remains a positive sign for market growth and stability.
If the growth in smaller wallets continues, it could lay the foundation for sustained bullish momentum in the future. On-chain data from CryptoQuant indicates investors are in a 'Belief' phase, characterized by high unrealized profits, suggesting market participants are holding onto their Bitcoin, anticipating a potential rally in the near term.
