The surge in the number of Bitcoin [BTC] addresses holding over 1,000 BTC has reached an unprecedented level, even as the coin faced a dip in performance following the approval of ETFs, as reported by IntoTheBlock’s data. As of the latest update, the leading cryptocurrency is valued at $41,760, reflecting a 15% decrease from its post-ETF approval peak of $48,625.
In the wake of persistently bearish sentiment, numerous market participants have opted to reduce their exposure to Bitcoin, strategically distributing portions of their BTC holdings. Interestingly, larger whales, holding over 1000 coins, have taken a divergent approach by intensifying their accumulation efforts amidst the declining price trend.
Smaller Bitcoin Whales Chart a Unique Course
Conversely, investors holding between 1 and 1000 coins have chosen a different path, actively reducing their holdings in recent days. Santiment’s data indicates that this group of BTC investors initiated a coin distribution on January 5, possibly influenced by a report from crypto investment services provider Matrixport published two days prior. The report speculated on the expectation of the U.S. Securities and Exchange Commission (SEC) rejecting all pending spot BTC ETF applications.
This triggered a market frenzy, resulting in a double-digit plunge in BTC’s value and the liquidation of $500 million worth of positions across derivatives exchanges within a 24-hour period.
Despite the approval of ETFs, sentiments among BTC holders failed to improve. As of January 26th, there were 878,000 addresses holding between 1 and 1000 coins, marking a 0.4% decrease from the 882,000 addresses at the beginning of the year.
Related: Bitcoin’s Pre-Halving Rollercoaster: Dips and Swift Recovery
The overall sentiment surrounding BTC has continued to deteriorate, with the coin’s weighted sentiment at -0.49 as of the latest update. This negativity has been apparent in the downward trajectory of the coin’s price since January 15th.
Further confirming the prevailing pessimism in the BTC market, its futures open interest has witnessed a significant decline, dropping by 15% since the introduction of ETFs. Current data from Coinglass indicates a futures open interest of $17 billion, down from over $20 billion on January 10th when ETFs were approved.
