According to Santiment, there has been a declining supply of Bitcoin and Ethereum mining wallets held since the first half of this year, i.e., 2024. There is speculation that the price will soon rebound as it strengthens the chances of a bull run. If this is true, then it adds to other factors that could cause a bull run for BTC and ETH in the days to come.
For reference, Bitcoin is listed at $57,797.15, down by 0.22% in the last 24 hours at the time of writing this article. Ether is exchanging hands at $2,342.56, down by 0.56% in a single day right now. Both tokens are poised for a strong rebound, except BTC could be the one to see a higher surge in value.
The flagship cryptocurrency is projected to rise as high as $80,000 in the next 30 days. This growth is dependent on the current conditions. If favorable factors align, the growth could increase. The Federal Reserve’s rate cut is one of the most eagerly anticipated factors. An announcement is right on the horizon, slashing rates by at least 25 bps.
Since the inflation data shows a rate of 2.53% as of August 31, 2024, the rate is certain. That is lower than the previous month’s 2.89% and closer to the aggressive target of 2%. Data for the US Consumer Price Index is also out. It was published on September 11, 2024, at around 8:30 a.m. It met the forecast of 2.5% against the previous month’s number of 2.9%, slightly away from the forecast of 3% on August 14, 2024.
Santiment had previously said that BTC would begin testing its March ATH once the crowd began to express doubt. In other words, BTC’s price rises when the community least expects that to happen. Optimism associated with it ends up pulling the price down. Community members countered that statement, saying that there were no substantial positive sentiments.
BTC and ETH have another enemy to fight: Spot ETFs.
On September 12, 2024, Spot Bitcoin ETFs banked a collective net inflow of $39 million, bringing the cumulative net flow to $17.03 billion in historical context. Spot Ether ETFs, however, banked an outflow of $20.1 million, taking the historical cumulative negative flow to $582.9 million.
Ethereum mining wallets, per Santiment, hold 1.18 million ETH now. It is down by 4.5% from the peak of 2024 that was seen on June 10th. The total number of tokens in Bitcoin mining wallets is 2.14 million, which represents a 4.3% decrease from the peak of 2024, which occurred on April 21st. It suggests that a forthcoming bull market will be further stimulated by factors such as controlled inflation and rate cuts. Concerns about the recession are still looming, but the crypto market may see some relief for the first time since 2019.
