Ethereum
Bitcoin Users Run Amid Price Drop, But Ethereum Sets Records
On-chain data shows that Bitcoin has recently seen an exodus of investors, while the Ethereum network has continued to grow.
The total number of Bitcoin holders just experienced the biggest drop since March
According to data from the on-chain analytics company FeelingThe Total Holders Amount indicator just experienced its biggest 3-day drop for Bitcoin since March.
As the name of the metric already indicates, the “Total number of holders” keeps track of the total number of wallets on a given cryptocurrency network currently carrying a non-zero balance.
When the value of this metric increases, it suggests that either new investors are joining the blockchain, or old ones who left earlier are returning. The indicator also naturally increases when existing users create new addresses for privacy reasons.
In any case, the increasing number of holders generally implies a net amount of adoption for the asset, which may be bullish for its price in the long term.
On the other hand, the declining metric implies that a net number of users are completely emptying their wallets. Such a trend suggests that some holders have decided to withdraw from the cryptocurrency.
Now here’s a chart that shows the trend in total holders for the industry’s two biggest coins, Bitcoin and Ethereum, over the past six months:
The metric appears to have gone opposite ways for these two assets in recent days | Source: Santiment on X
As the chart above shows, the total number of Bitcoin holders has recently seen a decrease, suggesting that some selling has taken place. The recent 3-day decline is the largest the indicator has seen since just before the price’s all-time high in March.
This decline is due to the fact that investors booked their profits while the rally was still underway. This time around, however, the cryptocurrency’s price has seen more bearish action, so this exodus of holders is likely occurring due to fears of further declines.
Although Bitcoin saw total holders decline, the indicator did not interrupt its upward trend for Ethereum as the network continued to reach new highs. Thus, it seems that ETH investors are not suffering capitulation Again.
Historically, assets have tended to move against investors’ expectations, so fear in the market has often helped reverse the price trend. While Bitcoin investors appear to be scared right now, it is possible that the bottom is near for the coin.
Ethereum adoption continuing to occur at the same rate as previously may not exactly be bearish, but it shows that its users are not yet worried about the price.
BTC Price
At the time of writing, Bitcoin is trading at around $64,700, down almost 3% over the past week.
Looks like the price of the coin has been sliding down recently | Source: BTCUSD on TradingView
Featured image of Dall-E, Santiment.net, chart from TradingView.com