Traders Exit Bitcoin Wallets in Favor of ETF Exposure; Will This Impact the Crypto Space?

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No sooner than the SEC approved all the Spot Bitcoin ETF applications, the trading volume shot up to $4 billion. Some institutions prevented their customers from buying the ETFs, which marginally impacted the BTC price, which plummeted below $46,000 for a while. Currently, the Bitcoin price continues to hold above $46,000, withstanding the bearish pressure. This indicates the bulls are preparing themselves for the next bullish move, which may set new highs very soon.

Amid the bullish sentiments prevailing within the crypto space, traders are now shifting their focus out of the crypto space. In a new update from a popular analytical platform, Santiment, Bitcoin traders are letting out their wallets, probably for the Bitcoin ETF. A significant decline in the active wallet count has been observed since the start of 2024.

As per the data, the active wallet count has slashed hard from 49.4K to 46.5K, while the number of tokens in the wallet declined from 53.21 million to 52.64 million. A drop of nearly 40,000 BTC in just a few days indicates the traders may have shifted their holdings in favour of the spot Bitcoin ETF. On the other hand, Coinbase recorded more than $7 billion in OTC transfers in the past few hours, which adds substance to the above claim.

Will this move impact the Bitcoin price?

The Bitcoin price continues to hold crucial support at $46,000, suggesting a strong presence of bulls. Even though the selling volume has been intensifying since the previous day’s trade, the price has managed to sustain the gains. However, the trade continues to remain under a bullish influence, which suggests the token will maintain a sideways trend as the volume remains comparatively low.

Therefore, until the Bitcoin (BTC) price sustains above the support level, it has a greater chance of bouncing back to $48,000. Otherwise, a bearish close for the day may trigger a fresh pullback, aiming to test the lower support below $45,000 before the end of the week.