Bitcoin experienced a sharp decline in wallet holders, losing nearly 245,000 addresses within five days. According to on chain analytics platform Santiment, this marks the fastest pace of wallet exits seen in almost two years. A similar pattern occurred during the summer of 2024 and was followed by a strong bullish rally.
Retail Investors Appear to Be Taking Profits
Santiment suggested that the recent decline in wallet activity is likely linked to retail traders cashing out profits. The firm explained that when smaller holders exit the market, Bitcoin supply becomes concentrated among investors with stronger long term conviction.
This shift reduces the amount of Bitcoin readily available for sale because the remaining holders are less willing to sell at current prices. Santiment pointed to the June and July 2024 period when more than 964,000 wallets exited the market over five weeks. Instead of leading to a prolonged downturn, that phase eventually paved the way for a major upward rally.
Analysts at the firm believe the current situation could follow a similar trajectory. If history repeats itself, the Bitcoin being sold now may end up in the hands of long term investors who often help drive the next major price surge.
Bitcoin Slips Below Key Price Level
The reduction in wallet holders comes as Bitcoin recently fell below the $80,000 mark after briefly climbing above it earlier in the week. The cryptocurrency had rallied close to $83,000, reaching a multi month high before retreating toward $81,000 where some support emerged.
Market analyst Ali Martinez highlighted $80,300 as an important level because it represents the average purchase price for wallets that accumulated Bitcoin within the past 155 days.
At the time of reporting, Bitcoin was trading near $79,500, reflecting a 2 percent decline over the previous 24 hours. The asset also remains roughly 37 percent below its all time high recorded in October 2025.
Large Holders Could Influence the Next Move
Because Bitcoin is trading below the average entry price of newer large investors, many of these holders are currently sitting at a loss. Martinez warned that some may decide to sell simply to recover their initial investment, potentially creating additional downward pressure on the market.
Despite recent weakness, Bitcoin remains up around 11 percent over the past month. During the last seven days, its price has fluctuated between $77,000 and $82,500, showing continued volatility within a relatively defined range.
Martinez noted that if Bitcoin can reclaim and maintain levels above $80,300, many large holders would return to profitability. That shift could reduce selling pressure and encourage renewed buying momentum, a development he described as a common starting point for new bullish trends.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic
