Leading cryptocurrency Bitcoin fell below $40,000 on weekdays due to ongoing selling pressure.
As the selling pressure in BTC continued, there were also large liquidations in small Bitcoin wallets.
At this point, on-chain data provider Santiment, which examined the liquidation in Bitcoin wallets, announced that there was a significant decrease in the total number of Bitcoin wallets.
Pointing out that the latest decline in BTC wallets was the fastest decline since the beginning of October, when the rise began, Santiment stated that this situation is an indication of the impatience among investors.
In the last four days alone, more than 487,000 wallets holding 1 BTC or less each were liquidated, according to the data.
Referring to historical data, Santiment stated that historical models show that such rapid declines in wallet numbers are often associated with capitulation, a phase that may precede a jump in market price.
At this point, Santiment considered the recent disappointment in the market performance of ETFs in the past two weeks, following the approval of 11 ETFs, as a significant factor in the liquidation of wallets.
“The total amount of Bitcoin wallets is falling at the fastest rate since the beginning of October. The crowd is showing a similar level of impatience this time as in the October crash.
In the last four days alone, more than 487,000 wallets holding 1 BTC or less each were liquidated.
History tells us that this is typically a sign of capitulation and can lead to a jump in market prices after small investors become optimistic again about crypto as an investment vehicle. “
📉👋 The amount of total #Bitcoin wallets have been declining at their swiftest rate since early October (just before the major #crypto #bullcycle started). The crowd is showing a similar level of impatience this time around with over 487K wallets holding 1 $BTC or pic.twitter.com/K6LwSWYUYM
— Santiment (@santimentfeed) January 26, 2024
*This is not investment advice.