While the Ethereum network has been growing fast, recent evidence from on-chain sources shows that many investors have been leaving Bitcoin recently.
The Biggest Decline in Bitcoin Holders Since March
The number of Bitcoin holders has dropped for the first time in three days since March, as per data from the on-chain analytics firm Santiment.
The “ Total Amount of Holders” metrics, as its name implies, count all the wallets inside a cryptocurrency network with some coins.
An increase in this indicator shows that either new investors are joining the blockchain or that investors who had left before are coming back, when current users create new addresses for privacy-related reasons, the sign also increases.
In any case, more holders usually state that more individuals are using the asset, eventually boosting its value.
Conversely, a decline in this indicator shows that more users are taking all their coins out of their wallets. This pattern suggests some Bitcoin holders have decided to sell their holdings.
This graph shows the evolution of the total wallet holders for the two most popular crypto, Ethereum and Bitcoin, during the last six months:
The graph above illustrates how the number of Bitcoin holders has decreased recently, suggesting that some selling has occurred. This indicator has shown the greatest loss in the last three days, since before Bitcoin hit its all-time high in March.
To profit while the market was still rising, the investor sold their holdings. But, this time around, the price of Bitcoin has been dropping, which has led owners to sell to sell because they fear greater losses in the future.
Ethereum‘s holder count indicator is still rising, indicating the network’s continued success. In comparison, Bitcoin’s holder count has decreased. This implies that Ethereum investors aren’t selling off their holdings in a panic just yet.
In the past, particularly during times of significant market anxiety, assets often have shifted in unanticipated ways. Given investor’s current concerns, there is a probability that the price of Bitcoin may either stabilize or reverse its declining trend very soon.
The fact that Ethereum adoption is continuing at a steady rate could mean that its consumers are not now worried about the price.
Bitcoin Price Update
The price of Bitcoin at the time of writing is over $65,500, down almost 3% from the previous week.
