The SEC’s approval of the Spot Bitcoin ETF applications led to a surge in trading volume to $4 billion. Institutions temporarily inhibited customers from purchasing the ETFs, causing a minor dip in BTC price to below $46,000. As of now, Bitcoin price remains above $46,000, signaling resistance against bearish pressure and hinting at a potential bullish surge.
Amid the prevailing bullish sentiment in the crypto space, traders are now redirecting their focus away from cryptocurrencies. According to a recent update from the well-known analytical platform, Santiment, Bitcoin traders are emptying their wallets, likely due to the Bitcoin ETF. A sharp decline in active wallet count has been observed since the beginning of 2024.
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Based on the data, the active wallet count has plummeted from 49.4K to 46.5K, while the number of tokens in the wallet decreased from 53.21 million to 52.64 million. A rapid reduction of nearly 40,000 BTC within days suggests that traders may have shifted their holdings in favor of the spot Bitcoin ETF. At the same time, Coinbase has registered over $7 billion in OTC transfers in the past few hours, further supporting this claim.
Will this move impact the Bitcoin price?
The Bitcoin price continues to maintain critical support at $46,000, indicating strong bullish presence. Despite intensifying selling volume in recent trades, the price has held its ground. However, the trade remains under a bullish influence, suggesting that the token will likely maintain a sideways trend due to comparably low volume.
Therefore, as long as the Bitcoin (BTC) price remains above the support level, it stands a good chance of rebounding to $48,000. Conversely, a bearish close for the day could trigger a new pullback, potentially testing the lower support below $45,000 by the week’s end.
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Sahana Vibhute
A passionate cryptocurrency and blockchain author qualified to cover every event in the crypto space. Researching minute occurrences and bringing new insights lie within the prime focus of my task.