Bitcoin Has Lost 30,000 Wallets: Could That Be Good News for BTC?

Declining wallet numbers offer a possible contrarian signal, not confirmation that Bitcoin has reached its low.

Bitcoin may be approaching a local bottom as smaller holders continue to leave the market. Since October 16, the number of non-empty wallets has declined by 30,000.

Santiment found that the total has fallen to nearly 59.95 million.

Local Bottom

The decline comes after weeks of limited price movement, as the crypto asset struggles to regain momentum near $80,000. While fewer wallets may raise concerns about network participation, the trend could also reflect growing frustration among retail holders. According to Santiment, this kind of capitulation can create better conditions for a recovery than a sudden rush of buyers chasing a rally.

But it is also important to note that the price needs to confirm the signal. Bitcoin must hold the $80,000 level and reclaim around $82,500 to strengthen the case for a local bottom. A drop below $79,000, on the other hand, would weaken that outlook.

Doctor Profit recently said that the latest downturn is a correction and not the start of a new bear market. He believes the $80,000 to $81,500 range could act as a major support zone, as it lines up with the average entry prices of Bitcoin treasury companies and spot ETF investors. While short-term holders are still selling, longer-term investors who bought between $60,000 and $70,000 seem reluctant to exit. This steady demand and continued accumulation could help the asset form a local bottom, although the price still needs to confirm that shift.