Big Bitcoin Wallets Set a New High as Short Bets Multiply

Santiment data shows Bitcoin (BTC) wallets with 10 to 10,000 BTC have risen to 20,338, the highest count on record.

The number of such wallets has climbed steeply since mid-July, while BTC's price lurched one way then the other across that same period.

Big Bitcoin Holder Accounts Keep on Increasing

Santiment, which monitors on-chain data, says this group's size has historically tracked where Bitcoin's price heads next.

When new large wallets appear in this range during choppy trading, the firm sees confidence among wealthy investors. These holders, in the firm's view, are sticking around through weak patches.

The trend is encouraging for BTC bulls, Santiment says, but it warned the price could still fall further in the near term.

“Persistent growth among Bitcoin’s most influential wallets creates a healthier setup for future upside if accumulation continues,” the firm said.

Bearish Bets Grow as Bitcoin ETFs Lose Funds

Nonetheless, 2 other investor groups have tilted in the opposite direction this month. Binance's Bitcoin funding rates have gone negative, with the reading at -0.0073%, analyst Darkfost reported.

A negative funding rate indicates that most traders are currently short. Funding was last below zero in June, when BTC changed hands around $62,000.

Binance, according to Darkfost, incorporates a 0.01% interest rate into its calculation. With neutral set at 0.01%, anything beneath zero points to a heavily short market.

The change followed consumer and producer inflation data that landed hotter than expected, making a rate hike more likely. BTC dipped below $80,000 on October 15 after the producer inflation report was released.

ETF investors have been pulling money out as well. US spot Bitcoin ETFs registered about $539.8 million in net outflows between October 1 and 14, including $261.5 million on October 14 alone.

August brought $3.52 billion in net inflows to these funds, while September contributed $2.65 billion.

Key Bitcoin Price Marks Stretch From $74,000 to $88,000

That said, Bitcoin has clawed back a portion of its recent slide within the last 24 hours. BeInCrypto Markets data puts the coin at $82,034, 1.49% higher over the past day.

The bounce puts it back above $81,500, the approximate average cost of US spot ETF holdings, according to Glassnode.

A few days after BTC reached $87,000, it went through a sharp correction, according to Darkfost. He added that crowded bearish positioning has often come before reversals, although some of those reversals did not last.

The analyst called out $80,000 and $74,000 as important levels. On Binance's spot order book, Glassnode sees the biggest bid block at $80,000. The True Market Mean is situated just under that, around $78,000.

To the upside, $88,000 is where the cost basis of 6-to-12-month buyers meets a cluster of short liquidations. A daily close above it plus fresh ETF inflows would signal buyers taking in supply, according to Glassnode.

If BTC revisits $80,000, the Santiment wallet tally will reveal whether big holders continue buying at cheaper levels.