Bitcoin’s Price Surge Requires This Key Component: Santiment

Over the last fortnight, bitcoin has undergone a market correction of approximately 11% alongside notable price fluctuations. While the top crypto asset recently made a brief comeback to $58,000, it still faces a considerable journey before reaching its previous all-time high.

On-chain data from the blockchain analytics firm Santiment indicates that bitcoin wallets with less than 1 BTC are actively accumulating more of the asset.

Bitcoin has peaked at $58K today, with sentiment among retail traders showing signs of improvement. Wallets with <1 BTC now account for their highest share of the supply in 7 months.

Nonetheless, an ideal condition for crypto to rally back to all-time peaks would… pic.twitter.com/riPbS2W9qz

— Santiment (@santimentfeed) September 10, 2024

The chart above illustrates that these holders have increased their bitcoin supply holdings to 7.22%, the highest since February 7th. However, a notable increase in BTC’s price is expected if the following occurs:

Factors That Could Propel BTC’s Price

Santiment’s findings revealed that while wallets with less than 1 BTC are amassing more bitcoins, those holding 1-100 BTC and over 100 BTC have seen less activity recently, with their peak supply distribution occurring on July 27th and August 14th, respectively.

The market intelligence company explained that bitcoin’s price could potentially reach its peak value of $73,700 if the holders with 1-100 BTC continue to accumulate steadily and larger holders aggressively stack the digital currency.

It’s important to note that bitcoin and other cryptocurrencies have experienced greater outflows than inflows recently. For instance, spot Bitcoin exchange-traded funds (ETFs) in the U.S. have seen continual outflows totaling millions of dollars for nearly two weeks.

On a positive note, the Japanese investment firm Metaplanet recently increased its bitcoin holdings by 38.464 BTC (valued at $2 million), bringing its total to 398.832 BTC, worth $26 million. While this significant purchase had a positive impact on the firm’s stock value, it did little to elevate bitcoin’s price.

Santiment theorizes that if larger buyers, such as MicroStrategy and substantial Bitcoin ETF products, begin to see significant BTC inflows, the value of the digital asset could experience a remarkable rise, even if smaller wallets start selling some of their holdings.

Bitcoin Supporters Remain Optimistic

Regardless of bitcoin’s current price trends, supporters are confident that the asset will yield significant growth over the long term.

Michael Saylor, co-founder of MicroStrategy, recently asserted that BTC could reach an astounding $13 million over the next two decades.