Bitcoin Reclaims $70,000 as Small Wallets Sell Holdings

Bitcoin’s price has surged back to $70,000, attempting to reclaim its recent historical high. Despite this upward movement, small wallets continue to sell their holdings.

Small Wallet Sell-off Amid Accumulation by Larger Investors

The overall accumulation of BTC continues, indicating that while small investors are selling, larger investors or institutions are buying. According to the latest data from Santiment, small Bitcoin wallets have been offloading their BTC over the past few weeks.

Analysis of the total number of holders shows that over 182,000 holders sold their shares in the past week. The chart indicates a 0.46% reduction in wallets holding less than 0.1 BTC over the past week, likely due to small wallets attempting to quickly profit from the price surge.

Bullish Indicators: Small Wallets Sell, Large Wallets Accumulate

Despite this decrease, the pattern of small wallet sell-offs coupled with large wallet accumulation is often seen as a bullish signal. An analysis of wallets holding 1,000 or more BTC shows an increase in their holdings recently. As of this writing, the total number of Bitcoin holders is approximately 53.8 million.

An analysis of Bitcoin’s net transaction flow shows it recently experienced the highest negative transaction volume. On May 15, the net flow was -22,359 BTC, the highest level since December 2023. The chart shows that net flow has remained negative since then, meaning more BTC is being withdrawn from exchanges than deposited. This indicates that despite the sell-off by small Bitcoin wallets, a significant accumulation of Bitcoin is occurring.

Implications for Bitcoin Price Trends

This trend is typically a bullish signal, reflecting increased confidence among larger holders and reducing the available supply on exchanges. Consequently, the price trend may benefit from this increased accumulation.