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The market is undergoing a major decline, as seen by the 3.38% drop in the combined crypto market capitalization to $1.39 trillion, a massive correction led by Bitcoin (BTC). The leading digital currency is down 2.56% to $36,387.35, while trading volume fell 8.16% to $26,162,786,899.
Beyond the performance of Bitcoin (BTC), a subtle shift is occurring in the BTC network, as stained by the cryptanalysis platform, Santiment. According to the platform, Bitcoin wallets have seen massive fluctuations in recent months and the market has been largely erratic.
In a dramatic turn, addresses with less than one Bitcoin have flooded the network, as holders with between one and 100 units flatten out. As Santiment noted, Bitcoin wallets containing more than 100 BTC units are in the midst of what appears to be a profit-taking campaign.
Data shows that small Bitcoin addresses have reached a new high, with more than 1.5 million more of these holders emerging in the last month. Those within the 1-100 Bitcoin group have lost 118 addresses over the last month, and large wallet holders with more than 100 BTC have seen 19 addresses removed in the same time frame.
Temporary nature of the permanent Bitcoin (BTC) trend
The restructuring taking place in the Bitcoin ecosystem right now underlines the current market dynamics. However, with the possible approval of the Bitcoin spot Exchange Traded Fund (ETF) on the horizon, we may see the entry of both small and large scale holders.
This highly anticipated product with a 90% positive projection is considered the predominant channel for institutional investors to make their way into the Bitcoin ecosystem. This event will also help push the price of Bitcoin to new heights, with many projecting that it could usher in the market’s next major bull cycle.
