Bitcoin is on the verge of surpassing 20,000 wallets with at least 100 Bitcoin, an indicator that could signal healthy market dynamics, according to crypto analytics platform Santiment.

As of Thursday, there were 19,993 unique wallets holding 100 BTC or more, worth roughly $6.71 million per wallet at the time of publication, Santiment said in an X post on Thursday. Santiment anticipates that the milestone could be reached by Friday.

“If the number of 100+ BTC wallets is growing, that suggests distribution across more large holders rather than a small group controlling everything,” Santiment said. It is an important signal for Bitcoiners, as it reduces the perceived risk that a small number of whales can significantly swing prices.

Santiment points to “less extreme consolidation”

“In that sense, it points to less extreme consolidation at the very top,” Santiment said.

The trend also hints at rising confidence in a turnaround for Bitcoin (BTC), which is down around 47% from its October all-time high of $126,100 and is currently trading at $67,260, according to CoinMarketCap.

Santiment explained that an increase in the number of large wallet holders after a Bitcoin price drop can be a bullish signal. 

However, it noted that the overall percentage of supply held by this cohort hasn’t changed, suggesting that while new wallets are reaching 100 Bitcoins, some long-term holders are likely selling.

“This is why prices have stayed suppressed,” Santiment said.

Are Bitcoin OGs done “selling aggressively” for now?

Fears that long-term Bitcoin holders are selling have been ramping up over the past three months and are widely seen as a key catalyst behind the recent pullback.