Bitcoin holders dropped by 672,510 to 53.84 million, with analysts predicting a rebound and market shifts to meme coins and other altcoins.

The number of Bitcoin holders has seen a significant decline, as revealed by a recent Santiment analysis. Traders appear to be selling off their assets following the all-time high (ATH) in March 2024. Per Santiment, this mass liquidation suggests a potential for a price rebound.

Bitcoin’s amount of holders (any wallets with >0 coins) have been dropping aggressively as traders still seem to believe the March ATH was as good as it’s going to get in 2024. When we see mass liquidations like this, the probability of a continued rebound only increases. pic.twitter.com/YTHEFTtfhY

— Santiment (@santimentfeed) July 17, 2024

Santiment’s data highlights a substantial drop in Bitcoin holders, with 672,510 fewer addresses holding Bitcoin compared to a month ago. The current total stands at 53.84 million.

This drop is the most prolonged decline since mid-September to mid-October 2023, a period just before the previous bull run. Notably, traders’ belief that the March ATH is the peak for the year has driven aggressive selling and liquidations, reflecting in the decreased number of holders.

Speculations on Bitcoin Holder Decline

Speculations on X suggest various reasons behind the significant drop in Bitcoin holders. Some users believe that funds are being redirected into altcoins, indicating the beginning of an altcoin season.

Additionally, some traders are reallocating their Bitcoin investments into meme coins, anticipating a potential bullish market for these alternative assets.

Holder Distribution and Transaction Activity

Elsewhere, according to data from IntoTheBlock, Bitcoin’s holder distribution is varied, with a significant number of addresses holding smaller amounts of Bitcoin. Out of the 54.19 million addresses, the majority hold less than 0.01 BTC.

IntoTheBlock

Larger holders, those with balances between 1 to 100 BTC, account for approximately 994.53K addresses, representing more substantial individual or small institutional investments. The transaction metrics show massive activity, with $92.22 billion worth of transactions over the past seven days.

Bitcoin to $100K Despite Holder Decline?

Despite the decline in Bitcoin holders, some market analysts remain optimistic about Bitcoin’s future potential. Todd Gordon, founder of Inside Edge Capital and CNBC contributor, predicts that Bitcoin could hit $100,000.

He attributes this optimistic forecast to former U.S. President Donald Trump’s pro-crypto stance, which he believes is boosting Bitcoin and related stocks.

As Trump positions himself as a pro-crypto candidate in the upcoming election, Bitcoin and stocks like Coinbase, MicroStrategy, Riot Platforms, and Marathon Digital are experiencing gains. Investors are linking Bitcoin’s upward trajectory to Trump’s rising popularity in polls and prediction markets.