The cryptocurrency market is witnessing a downturn in Bitcoin wallet activity, even after the Securities and Exchange Commission’s (SEC) recent approval of 11 spot Bitcoin exchange-traded funds (ETFs).
Data from Santiment, a blockchain analytics firm, shows a continued decline in the number of Bitcoin wallets holding more than zero coins, nearly four weeks following the landmark ETF approvals.
This trend points towards growing fear, uncertainty, and doubt (FUD) among investors, along with a shift in interest towards alternative investment options, away from direct Bitcoin ownership.
A decline in active addresses
Detailed data from IntoTheBlock reveal a notable decline in daily active addresses, new addresses, and active addresses, alongside an increase in zero balance addresses.
Over the last week, daily active addresses saw a sharp decrease of 35.95%, with new addresses and active addresses falling by 5.99% and 24.40%, respectively.
Even more telling is the total number of Bitcoin addresses, which has been relatively stagnant, showcasing a minor fluctuation within the 30-day period, from a high of 51.93 million to a low of 51.45 million addresses.
A conflicting narrative
The narrative surrounding the Bitcoin ETF launch has been a mix of excitement and skepticism. Anthony Scaramucci, a prominent figure in the cryptocurrency space, has vocally criticized the negative media coverage following the ETF approvals.
He disputes the pessimistic outlook by highlighting the substantial $5 billion ETF debut, challenging detractors on their definition of success.
This division extends to financial institutions like LPL Financial where a cautious approach is being adopted.