Over the past two weeks, bitcoin has been on a rollercoaster ride, experiencing a market correction of approximately 11%. Despite briefly rebounding to $58,000, the leading cryptocurrency still has a way to go before reaching its all-time high levels.
On-chain Data Insights
According to on-chain data from the blockchain market intelligence firm Santiment, there has been a notable trend of aggressive accumulation among bitcoin wallets holding less than 1 BTC. These holders have increased their bitcoin supply distribution to 7.22%, the highest level since February 7th. On the other hand, wallets holding 1-100 BTC and those with more than 100 BTC have seen a decrease in supply distribution, indicating a cooling off period.
Santiment’s data suggests that bitcoin’s price could see a significant surge if wallets holding 1-100 BTC continue to grow steadily and those with more than 100 BTC start stacking the digital asset aggressively. The potential increase in demand from larger holders could push bitcoin closer to its peak value of $73,700.
Recent weeks have seen more outflows than inflows for bitcoin and related assets. For example, United States spot Bitcoin exchange-traded funds (ETFs) have experienced continuous outflows worth millions of dollars over the past two weeks. However, there have been exceptions, such as the Japanese investment company Metaplanet, which recently acquired 38.464 BTC (worth $2 million), boosting its total bitcoin stash to 398.832 BTC, valued at $26 million.
Long-Term Outlook and Price Predictions
Despite the current price action, proponents of bitcoin remain optimistic about the asset’s long-term potential. MicroStrategy’s co-founder Michael Saylor even went as far as to predict that bitcoin could reach as high as $13 million in the next two decades. The key takeaway from Santiment’s analysis is that significant inflows from bigger buyers like MicroStrategy and large Bitcoin ETF products could lead to a meteoric surge in bitcoin’s value, even if wallets holding less than 1 BTC are shedding portions of their holdings.