Over the past two weeks, bitcoin has experienced a market correction of approximately 11% along with wild and volatile price swings. Despite a brief rebound to $58,000, the leading crypto asset still has a considerable distance to cover before reaching its all-time high levels.
Recent on-chain data from Santiment indicates that wallets holding less than 1 BTC have been aggressively accumulating the cryptocurrency. These holders have increased their bitcoin supply distribution to 7.22%, marking the highest percentage since February 7th. Interestingly, wallets holding 1-100 BTC and those with over 100 BTC have cooled off in their accumulation. This shift in distribution could have significant implications for bitcoin’s price movements.
In recent weeks, bitcoin and related assets have experienced more outflows than inflows. U.S. spot Bitcoin exchange-traded funds (ETFs) have seen continuous outflows amounting to millions of dollars over nearly two weeks. However, on a positive note, Japanese investment company Metaplanet recently increased its bitcoin holdings by acquiring 38.464 BTC (worth $2 million). This move boosted the company’s total bitcoin stash to 398.832 BTC, valued at $26 million.
Despite the current price action of bitcoin, many proponents believe that the cryptocurrency will experience substantial growth in the long term. MicroStrategy’s co-founder Michael Saylor has even gone as far as predicting that bitcoin could reach as high as $13 million in the next two decades. This optimistic outlook is based on the belief that larger buyers like MicroStrategy and major Bitcoin ETF products could drive significant inflows into the market, leading to a meteoric rise in bitcoin’s value.
The current state of bitcoin reflects a mix of market corrections, on-chain data trends, inflows, outflows, and predictions for the future. While short-term price movements may be volatile and uncertain, the long-term potential for bitcoin remains promising for many investors and analysts. It will be interesting to see how these factors continue to shape the trajectory of the cryptocurrency in the coming months and years.