Santiment Sees Bullish Indicator as Non-Empty BTC Wallets Decline by Over 211K

Recent data from Santiment indicates a significant decline in non-empty Bitcoin (BTC) wallets, which analysts interpret as a sign of fear, uncertainty, and doubt (FUD) among investors. This sentiment often precedes bullish market movements.

Decline in Non-Empty Wallets

In the past three weeks, the number of non-empty Bitcoin wallets has decreased by 211,500, bringing the total to 54.38 million. This trend may suggest that users are withdrawing their funds amidst market uncertainty, potentially influenced by the ongoing U.S. presidential election.

Santiment noted in a November 4 post that such declines historically lead to "future bounces" in Bitcoin prices, drawing from previous patterns.

Additionally, the USDC stablecoin has also seen a decrease, with a drop of 11,600 wallets in just one day over the weekend, reflecting volatility in the stablecoin market.

Increased Activity in Dogecoin Wallets

Contrasting the decline in Bitcoin wallets, Dogecoin (DOGE) is experiencing a surge in wallet activity. Over the past week, more than 46,000 new DOGE addresses have been created. This uptick may be attributed to the involvement of major DOGE supporter Elon Musk in the presidential campaign of Donald Trump, a candidate favorable to the crypto community. This has potentially sparked a fear of missing out (FOMO) among Dogecoin traders, despite recent price corrections.

Whales Maintain Position Amid Market Fluctuations

The ongoing election has led to expectations of increased market volatility. Santiment observed a reduction in whale Bitcoin transactions following a spike last week, with BTC prices currently around $68,700.

However, the decrease in whale activity does not necessarily indicate a price drop; it may signify that large investors are waiting for retail traders to make their moves before re-entering the market.

Despite some fluctuations, Bitcoin's performance remains resilient. At the time of writing, Bitcoin was trading at $68,718, reflecting a 3.1% decline over the past week, yet it outperforms the broader crypto market, which has dipped by 6.2%.