Over the past two weeks, the cryptocurrency market has witnessed a significant correction in bitcoin’s price, with a drop of approximately 11%. This correction has been accompanied by wild fluctuations in value, leaving investors uncertain about the asset’s future performance. Despite a brief rebound to $58,000, bitcoin still has a long way to go before reaching its all-time high levels.
According to on-chain data from Santiment, a blockchain market intelligence firm, there has been a noticeable trend of accumulation among wallets holding less than 1 BTC. These smaller holders have significantly increased their bitcoin supply distribution, reaching a high of 7.22%, the highest since February 7th. Conversely, wallets holding 1-100 BTC and those with over 100 BTC have slowed down their accumulation. Santiment suggests that for bitcoin’s price to see a substantial surge, holders with 1-100 BTC need to continue growing their holdings, while those with over 100 BTC should aggressively stack the digital asset.
Recent weeks have seen more outflows than inflows of bitcoin and related assets. US spot Bitcoin exchange-traded funds (ETFs) have experienced continuous outflows totaling millions of dollars over nearly two weeks. On a positive note, Japanese investment company Metaplanet made a significant purchase of 38.464 BTC, worth $2 million, increasing its total holdings to 398.832 BTC valued at $26 million. While this purchase boosted the firm’s stock price, it did not have a noticeable impact on bitcoin’s overall value.
Despite the current price fluctuations, many proponents remain optimistic about bitcoin’s long-term potential. Michael Saylor, co-founder of MicroStrategy, recently made a bold prediction that BTC could reach as high as $13 million in the next two decades. Although the market is experiencing significant volatility and uncertainty, some believe that bitcoin will continue to see substantial growth in the coming years.
The recent market trends and on-chain data analysis indicate a mixed outlook for bitcoin’s future. While smaller holders are accumulating more bitcoin, larger holders have slowed down their accumulation. The influx of funds from significant buyers like MicroStrategy could potentially drive bitcoin’s value to new heights. Despite the current challenges, many investors remain hopeful that bitcoin will unlock significant value in the long term.
