Bitcoin ETFs Greenlit by SEC, Yet Wallet Activity Declines: Is Fear Overtaking FOMO?
Crypto News – The cryptocurrency market is currently witnessing a downturn in Bitcoin wallet activity, even in the wake of the recent approval by the Securities and Exchange Commission (SEC) of 11 spot Bitcoin exchange-traded funds (ETFs).
Data provided by Santiment, a blockchain analytics firm, indicates a sustained decrease in the number of Bitcoin wallets holding more than zero coins, nearly four weeks following the groundbreaking ETF approvals.
This trend suggests a growing sentiment of fear, uncertainty, and doubt (FUD) among investors, coupled with a noticeable shift in interest towards alternative investment avenues, moving away from direct Bitcoin ownership.
Decline in Active Addresses
Comprehensive data from IntoTheBlock unveils a significant decline in daily active addresses, new addresses, and overall active addresses, alongside a rise in zero-balance addresses.
In the past week alone, daily active addresses experienced a sharp decrease of 35.95%, with new addresses and active addresses declining by 5.99% and 24.40%, respectively.
Moreover, the total number of Bitcoin addresses has remained relatively stagnant, exhibiting only minor fluctuations over the 30-day period, ranging from a high of 51.93 million to a low of 51.45 million addresses.
A Discordant Narrative
The narrative surrounding the launch of Bitcoin ETFs has been characterized by a blend of excitement and skepticism. Notably, Anthony Scaramucci, a prominent figure in the cryptocurrency space, has openly criticized the negative media coverage following the ETF approvals.
He challenges the pessimistic outlook by underscoring the significant $5 billion ETF debut, prompting critics to reconsider their definition of success.
This divergence in perspectives extends to financial institutions such as LPL Financial, where a cautious approach is being adopted.
In summary, while the approval of Bitcoin ETFs by the SEC was anticipated to invigorate the market, the persisting decline in Bitcoin wallet activity suggests a nuanced landscape characterized by both optimism and apprehension among investors.
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