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Posted:
- Bitcoin addresses under 100 BTC have increased, while whale supply hit a four-month low.
- The younger age categories are willing to pay higher prices for BTC.
Bitcoin [BTC] addresses holding less than 100 BTC and whales holding as much as 100 to 100,000 BTC have decided to take different paths. This is evident from a new revelation from Santiment.
Read Bitcoins [BTC] Price prediction 2023-2024
According to the on-chain analytical data provider, non-whale portfolios have soared to a new All-Time High (ATH).
The increase subsequently helped the cohort reach 41.1% of the total Bitcoin supply. But on the other hand, whale supply fell to 55.5% – the lowest level since May.
🐳📉 #Bitcoin‘s non-whale wallets, defined as addresses with fewer than 100 $BTChave climbed to new #AllTimeHigh levels, which now hold 41.1% of the available supply. Meanwhile, whales at 100 to 100,000 own 55.5% of the supply, the lowest since May. https://t.co/JktSd6yM6Z pic.twitter.com/f2cwYZ3MTX
— Santiment (@santimentfeed) September 21, 2023
Confidence among small investors is increasing
A simple explanation for the data shared above is that the retail group has become more confident in BTC’s long-term performance. For many, the whales’ decline could mean that these big investors have lost enthusiasm for the king coin’s price action.
However, this may not be the situation. Recently, AMBCrypto reported that Bitcoin whales, like their Ethereum [ETH] counterparts, seem to be waiting for the right call (or opportunity) before they accumulate en masse. This could therefore be the reason that the number of whale addresses appears to be decreasing.
Regardless of the disagreements, Bitcoin’s weighted sentiment fell into the negative region. At the time of writing, the statistic was -0.16.
As an improved version of sentiment balance, weighted sentiment takes into account unique social volume to measure the positive or negative criticism surrounding an asset.
Positive values of the metric imply positive comments. However, because Bitcoin’s weighted sentiment was negative, this means that the average comment about the coin was not related to optimism.
Source: Santiment
As the volume drops, the excitement rises
One reason why sentiment has changed from the initial positive value may be volume related. The data above shows that Bitcoin’s volume has dropped to 13.91 billion. This was just two days after the 15 billion mark was crossed.
The price of BTC has also fallen from its initial surge to $27,000. Usually a significant increase in volume alongside a price increase could be a credible sign of a continuation optimistic trend. But since the opposite was the case, it means that BTC tends to fall again.
Meanwhile, the realized market capitalization HODL waves increased to 1.55. The metric is an alternative to circulation HODL waves. To get a value for this metric, Bitcoin’s cost basis is taken into account, and it is divided by different age ranges in which BTC is present in a given period.
Source: Santiment
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Spikes in younger groups suggest the market is willing to pay higher prices for Bitcoin. Conversely, as the older age categories increase, it means that Bitcoin is no longer attractive to the average investor.
Therefore, the jump into the HODL waves means that much of the market is excited about Bitcoin’s long-term prospects.