In recent days, bad news has been coming for bitcoin (BTC). The flagship crypto has lost its feathers in recent days. A downward dynamic which had a negative impact on smaller BTC portfolios whose total fell. BTC is clearly under pressure from which it has just gotten rid of.
Rise of bitcoin (BTC) despite the doubts of small holders
Recently, the valuation of bitcoin (BTC) fell below $40,000. This downward trend which has generally affected the crypto market has not spared small-scale BTC holders.
According to a study by crypto data provider Santiment, small Bitcoin wallets saw a sharp decline. In just four days, more than 487,000 wallets containing 1 BTC or less were liquidated.
According to Santiment, this flash decrease in the total number of small BTC wallets marks the fastest drop. In any case since the remarkable bull run that bitcoin (BTC) experienced in October 2023.
The crypto data provider explains that this trend reflects historical patterns often linked to investor disappointment. A situation which generally persists until small investors regain confidence in cryptos. And this won’t be long with the surprise rise of BTC.
Towards a new rally for the flagship crypto?
Basically, such a development signals a change in sentiment among small investors. This is one more reason for investors to closely monitor the dynamics of the bitcoin (BTC) price.
Analysts warn of a possible downward correction in the queen of cryptos. They estimate that the price could fall 15 to 20% from current levels. But likely, market volatility once again took them by surprise.
While a few hours ago bitcoin (BTC) was still trading around $40,100, the crypto broke the $40,000 resistance. It is currently worth $41,880 after gaining 0.45% in the past hour for a daily increase of 5.47%. For the moment, the reasons for this improvement need to be evaluated.
This is potentially good news for the crypto community, worried about the weak dynamism of the flagship crypto. Particularly since the approval of Bitcoin Spot ETFs touted for months as the stimulator of bitcoin (BTC) adoption. From now on, the question no longer arises as to whether the asset will withstand market pressure. With its new rise, we wonder if it will maintain bullish momentum. To be continued…
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