New on-chain data shows that Bitcoin’s Total Amount of Holders is forming a bullish pattern. This is a metric that has historically been linked to positive trends for the cryptocurrency.
As of late, on-chain analytics company Santiment says that BTC buyers have been selling their holdings during a recent wave of bearish sentiment. This trend can be seen in the “Total Amount of Holders” indicator, which counts the total number of addresses that have a sum.
If this measure goes up, it means that new investors are joining the network or that old holders are coming back.
Privacy changes impact Bitcoin holders
It can also happen when current users change their addresses to protect their privacy. Usually, a rise in the Total Amount of Holders means that more people are buying cryptocurrencies, which will be beneficial for all of them in the long run.
On the other hand, a decline in the metric means that some buyers are selling the asset by emptying their pockets.
It has been kept track of since the beginning of the year how many people own Bitcoin, Ethereum, XRP, Cardano, and Chainlink. Recently, Bitcoin’s performance in this area has gone down, which goes along with its price going down. In the last three weeks, 566,000 BTC wallets have been empty. This is likely because the market is down.
It’s interesting that Ethereum, Cardano, and XRP have all continued to see a net rise in holders, which means that more people are using these altcoins.
Some BTC users are likely leaving because the price is going down, but the fear, uncertainty, and doubt (FUD) that is making people leave could actually be good for the cryptocurrency in the long run. Bitcoin’s price has often gone against what the market thinks in the past, with fear causing price drops.
The chart shows that the Total Amount of Holders went down in both January and February. After that, there was a sharp rise to a new all-time high (ATH).
Bulls who are willing to wait should be delighted about this because wallets being liquidated by eager non-believers is a sign of FUD-causing bottoms, just like we saw in January.Bitcoin is worth about $57,400 at the moment, which is more than 7% less than it was a week ago.
