Bitcoin

<p>The world’s largest cryptocurrency Bitcoin has been facing strong selling pressure with the BTC price dropping under $40,000 earlier this week. Amid the current selling pressure, small Bitcoin wallets have seen major liquidation taking place.</p>
<h3 id="accelerated-decline-in-total-bitcoin-wallets">Accelerated Decline in Total Bitcoin Wallets</h3>
<p>On-chain data provider Santiment has reported a noteworthy decline in the total number of Bitcoin wallets, marking the swiftest rate since early October – just before the commencement of the major crypto bull cycle. This trend is indicative of a similar level of impatience among investors. Over the last four days alone, more than 487,000 wallets, each holding 1 BTC or less, have been liquidated.</p>
<p>Historical patterns suggest that such rapid declines in wallet numbers are often associated with capitulation, a phase that could precede a market price bounce. This trend tends to persist until smaller traders regain optimism toward crypto as a viable investment vehicle.</p>
<p>The recent disappointment in market performances, following the approval of 11 ETFs over the past two weeks, is considered a significant factor contributing to the liquidation of wallets. Santiment <a rel="noopener noreferrer nofollow" href="https://twitter.com/santimentfeed/status/1750699361695322320" target="_blank">suggests</a> that these developments may signal a potential shift in sentiment among smaller traders, with the market poised for potential adjustments.</p>
<h3 id="what-s-ahead-for-bitcoin">What’s Ahead for Bitcoin?</h3>
<p>Investors have been watching the Bitcoin price movements keenly in anticipation of what’s coming next. At press time, BTC is trading 0.73% up at a price of $40,104 with a market cap of $786 billion. Analysts, however, warn that there is every possibility of a further slide downwards with the BTC price likely to tank <a href="https://coingape.com/bitcoin-btc-price-close-under-38000-can-trigger-another-15-20-correction/" target="_blank" rel="noopener noreferrer nofollow">another 15-20%</a>.</p>
<p>In a recent assessment, crypto analyst Ali Martinez raises a cautionary note, stating that if Bitcoin’s price drops below $38,130, short-term BTC holders may face losses. This potential dip in Bitcoin’s value could instigate a new wave of panic selling, as holders seek to minimize potential losses in the short term. Martinez’s analysis serves as a signal to the crypto community, highlighting the importance of monitoring Bitcoin’s price movements and preparing for potential market reactions.</p>
<figure id="attachment_176788" aria-describedby="caption-attachment-176788" style="width: 100%" class="wp-caption aligncenter"><img decoding="async" class="size-full wp-image-176788" src="https://coingape.com/wp-content/uploads/2024/01/Bitcoin-Price-Drop-1.jpeg" alt="" width="1800" height="1013" srcset="https://coingape.com/wp-content/uploads/2024/01/Bitcoin-Price-Drop-1.jpeg 1800w, https://coingape.com/wp-content/uploads/2024/01/Bitcoin-Price-Drop-1-300x169.jpeg 300w, https://coingape.com/wp-content/uploads/2024/01/Bitcoin-Price-Drop-1-1224x689.jpeg 1224w, https://coingape.com/wp-content/uploads/2024/01/Bitcoin-Price-Drop-1-768x432.jpeg 768w, https://coingape.com/wp-content/uploads/2024/01/Bitcoin-Price-Drop-1-1536x864.jpeg 1536w, https://coingape.com/wp-content/uploads/2024/01/Bitcoin-Price-Drop-1-678x381.jpeg 678w, https://coingape.com/wp-content/uploads/2024/01/Bitcoin-Price-Drop-1-150x84.jpeg 150w" sizes="(max-width: 1800px) 100vw, 1800px">
 <figcaption id="caption-attachment-176788" class="wp-caption-text">
  Courtesy: Ali Martinez
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<p>The post <a href="https://coingape.com/total-bitcoin-wallets-declining-swiftly-500k-btc-wallets-liquidated/" rel="noopener noreferrer nofollow">Total Bitcoin Wallets Declining Swiftly, 500K BTC Wallets Liquidated</a> appeared first on <a href="https://coingape.com" rel="noopener noreferrer nofollow">CoinGape</a>.</p>

Total Bitcoin Wallets Declining Swiftly, 500K BTC Wallets Liquidated

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