Bitcoin’s price rebound above the $67,000 level has sparked a round of selling, but it’s not coming from the usual selling camp of immense investors. This time it is tiny traders who are unloading their bags and putting selling pressure on the price. This isn’t entirely a bad thing, however, considering that historically such sales have been bullish for Bitcoin’s price.
Bitcoin Retail is leaving its bags
In a report on Platform X (formerly Twitter), on-chain data tracker Santiment revealed an engaging trend among tiny Bitcoin investors. As Bitcoin’s price topped $67,000 over the weekend, these tiny wallets saw it as a time to sell and secure a profit.
These wallets are wallets with less than 0.1 BTC in their balance. This means that at the highest level, these wallets hold an average of $6,000. Santiment notes that their collective shares are down 0.46% for the week.
🐟👋 #Bitcoin dances slightly above 66.1 thousand dollars, just like tiny investors still do #liquidate your shares despite #crypto rebound over the last week. Historically, tiny wallets dropping their coins into larger wallets is encouraging and #bullish sign up for $BTC. https://t.co/wlz4XPhfMD pic.twitter.com/dTJAy5G6pL
— Santiment (@santimentfeed) May 19, 2024
Selling to smaller portfolios is nothing up-to-date, but at this level it can have a significant impact on price. However, compared to when whales and sharks sell their BTC holdings, retail investors’ selling tends to be bullish due to the price. This is because when smaller investors sell, BTC is taken by larger investors who usually hold long-term shares.
As a Crynet blockchain agency explain in response to Santiment: “While divestment from small investors may seem concerning, it is often a bullish signal. Historically, this redistribution to larger holders indicates stronger hands in the market. Let’s see how this plays out.”
Increased sentiment among investors
Selling by tiny traders in Bitcoin comes amid a spike in growth. As Santiment reported in a previous post, investor sentiment towards Bitcoin has reached its highest level in 4 months. The last time investors were so bullish was in January 2024, when the BTC price rose above $45,000.
Weighted sentiment for Bitcoin currently stands at 0.99, and while this is still lower than January’s high of almost 1.8, it remains among the highest among immense caps. Currently, only Chainlink (LINK) weighted sentiment is higher after rising to a up-to-date yearly high of 1.829.
🥳 The crowd’s mood changed towards #Bitcoin after an unexpected rebound above 66,000 on Wednesday. dollars (and currently above USD 67.2 thousand). Additionally, #ChainLink sees the most #bullish moods for over a year. #FOMO staying low will aid maintain these gains. https://t.co/TcEPBdS9Oh pic.twitter.com/czvE1mOgId
— Santiment (@santimentfeed) May 17, 2024
Ethereum weighted sentiment is currently at a low of -0.44, while Binance’s XRP and BNB are trading at around -0.37. This suggests that a bearish trend continues to prevail among these assets, while cryptocurrency investors expect Bitcoin to lead the market.
As of this writing, the BTC price is still trading high at $66,900. According to Coinmarketcap data, the largest cryptocurrency by market capitalization has seen an enhance of 6.78% in the last week and a slight decline of 0.5% in the last day.
Featured image created with Dall.E, chart from Tradingview.com
