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Data from Santiment shows that there has been a significant drop in non-empty Bitcoin (BTC) wallets.
The platform’s analysts have interpreted this as a sign of fear, uncertainty, and doubt (FUD) among crypto investors, a sentiment often associated with subsequent bullish performances.
Wallet Decline May Signal Bullish Sentiment
According to Santiment, in the last three weeks, non-empty wallets, or those that contain some amount of cryptocurrency, decreased by 211,500 to 54.38 million. This could indicate that more users are moving their funds out of their wallets, possibly due to market uncertainty caused by the ongoing U.S. presidential election.
However, in a November 4 post on X, the crypto data provider suggested that such a decline usually heralds “future bounces” in BTC prices, as shown by past patterns.
Besides Bitcoin, the USDC stablecoin also saw a notable drop, decreasing by 11,600 in a single day over the weekend. The decline came against a backdrop of wild fluctuations in the stablecoin market.
On the other hand, Dogecoin (DOGE), the largest meme coin by market capitalization, is experiencing an uptick in wallet activity. In the last week, on-chain data showed more than 46,000 new DOGE addresses.
With major DOGE supporter Elon Musk actively involved in the presidential campaign of Republican flagbearer and crypto ally Donald Trump, Santiment suggested the influx of new wallets may have been driven by the fear of missing out (FOMO) among Dogecoin traders who have been heavily speculating on the meme coin despite recent price corrections.
Whales Hold Steady Amid Market Volatility
The election has also led to anticipation among crypto traders of increased market unpredictability. Santiment observed a decline in whale Bitcoin transactions following a spike last week, with BTC prices currently hovering around the $68,700 level.
However, it stated that a reduction in such activity did not necessarily mean prices will fall; rather, it could be a signal that large investors are waiting for retail traders to make their moves before re-entering the market.
Meanwhile, Bitcoin’s recent performance shows resilience despite some drawbacks. At the time of writing, the world’s largest cryptocurrency by market cap was trading at $68,718, a 3.1% drop over the past week. However, it remains strong compared to the broader crypto market, which has dipped by 6.2%.
This article first appeared at CryptoPotato
