Bitcoin wallet addresses have been decreasing since October 2023. When the price of BTC fell below $40,000, more than 487,000 wallets holding up to 1 Bitcoin were forced to sell their assets.
The price of Bitcoin has been staying within a certain range, and we’re less than three months away from the next BTC halving event in April.
The price of Bitcoin is stuck around the important $40,000 mark after the Securities and Exchange Commission approved a Spot ETF about two weeks ago.
People who own less than 1 Bitcoin are selling their holdings, which we can see from the decrease in Bitcoin wallets since October 2023. If the value of Bitcoin keeps dropping, it might fall to a range between $38,304 and $38,957.
Daily Digest Market Mover: Bitcoin wallet addresses are dropping by 1 BTC
Sentiment data shows that the number of Bitcoin wallets holding less than 1 BTC has been dropping quickly since October 2023. In the last four days, when the price of Bitcoin fell to $38,555, about 487,000 wallets holding less than 1 BTC were sold off.
This means that small Bitcoin investors are decreasing as the price of Bitcoin goes down.
- Sentiment analysts say that the feelings among people trading Bitcoin (BTC) since the ETF approval may be why many small traders are selling their BTC.
- In less than three months, the Bitcoin halving event will cut the reward for mining in half. Usually, the price of Bitcoin drops before the halving, but then it goes up and makes the price of BTC higher than before.
- The halving event will happen in 2 months and 28 days from January 26.
- Experts think that after ETF approvals, the BTC halving will be the next big thing affecting the price of Bitcoin.
- Although the ETF approval caused people to sell BTC, the halving might make the price of BTC go up.
Read Also: Bitcoin ETF shows Negative Trend
Bitcoin’s price is staying around $40,000 without much change.
The price of Bitcoin is staying around $40,000, which is an important level for people’s feelings about it. Right now, Bitcoin costs $40,132. In the past week, people who own Bitcoin lost almost 3% of its value. The approval of an investment fund related to Bitcoin probably started a drop in its price, which has been falling since it reached $48,989 in 2024.
There’s a chance that the price of Bitcoin might drop to a level between $38,304 and $38,957, where a lot of people bought it.
If the price of Bitcoin ends the day above $41,466, it might disprove the idea that it will go down, and it could go up to $43,074 next.
How does open interest affect cryptocurrency prices?
When more people are interested in trading a certain asset, it means there’s more money flowing into the market and it’s easier to buy and sell. This is like making the market work better and it keeps happening over time.
But when fewer people are interested, it suggests that people are selling off their investments and leaving the market, which lowers the demand for the asset. This makes investors feel pessimistic about the market.
How does the funding rate affect cryptocurrency prices?
Funding fees help balance the gap between current prices and future contract prices for an asset. They also raise the risk for traders who need to sell quickly.
If the funding rate is consistently high and positive, it means most traders are optimistic and expect prices to go up. Conversely, if the funding rate is consistently negative, it means most traders are pessimistic and expect prices to drop, possibly leading to a trend change.
