bitcoinFeature
Bitcoin loses 30,000 wallets, signaling possible local bottom near $80,000
The count of non-empty Bitcoin wallets has dropped by 30,000 since October 16, according to Santiment, bringing the total to nearly 59.95 million.
This reduction in wallet numbers presents a potential contrarian indicator, though it does not confirm that Bitcoin has reached its market trough.
The decline follows weeks characterized by modest price action as the digital asset struggles to regain footing near the $80,000 mark.
While fewer active wallets might suggest diminished network engagement, this trend could also signal increasing frustration among smaller investors. Santiment suggests this kind of capitulation might foster better recovery conditions than a sudden surge of buyers.
However, price action must validate this signal. Bitcoin needs to sustain the $80,000 level and reclaim approximately $82,500 to support the notion of a local bottom. A breach below $79,000 would weaken that projection.
Doctor Profit recently characterized the current dip as a correction, not the beginning of a new bear market. He posits that the $80,000 to $81,500 range could function as significant support, aligning with average entry points for Bitcoin treasury companies and spot ETF investors.
Despite short-term selling, long-term holders who acquired between $60,000 and $70,000 appear resistant to exiting, providing steady demand and accumulation that might help form a local bottom.
Nevertheless, not all experts believe Bitcoin's most severe losses are behind it. Ali Martinez pointed to a historical pattern suggesting trouble for the crypto asset in the last quarter of 2026, noting BTC posted losses during Q4 of the last three US midterm election years: 16.7% in 2014, 42.16% in 2018, and 14.75% in 2022.
Regarding institutional buying, US spot BTC ETFs began the week with $110.34 million in inflows on Monday, offering some temporary respite after recent sales. Yet, October flows remain negative, with these funds showing over $200 million in net outflows so far.
On the corporate front, while Michael Saylor's Strategy opted to increase STRC repurchases instead of adding BTC, other entities continued accumulating. Strive executed a major purchase, acquiring 6,182 BTC for $511.4 million, bringing its total holdings to roughly 43,000 BTC.
Why it matters
The reduction in active wallets could signal retail capitulation, which some analysts view as a precursor to a recovery. However, price confirmation is crucial, as a drop below $79,000 would weaken bullish signals. Investors should watch the $80,000 support level closely for confirmation.
