Smallest Bitcoin holders are accumulating the cryptocurrency at a rate not seen in six years, reflecting a strong bullish sentiment in the market.
- Smallest Bitcoin holders, known as shrimps, are accumulating BTC at a rate not seen in six years.
- Shrimps are acquiring more BTC than the network issues monthly, displaying strong conviction.
- Shrimp accumulation is highest since the post-FTX-panic period, while dollar-wise, it is at the fastest rate since the 2017 bull market.
- Crabs (entities holding 1-10 BTC) are also accumulating a significant amount, with over 1 million addresses holding 1 BTC or more.
Bitcoin (BTC) is experiencing increased accumulation by its smallest holders, known as shrimps, at a rate not seen in nearly six years. This reflects a sense of shared optimism and bullish sentiment prevalent in the Bitcoin market this year.
Issuance 🔵 is ~27.0k $BTC/mth
For every 1 new coin, Shrimp are taking 1.25 off the market.
Crazy conviction on display. pic.twitter.com/2n7BdwBuWw
— _Checkɱate 🔑⚡🌋☢️🛢️ (@_Checkmatey_) July 5, 2023
According to Lead Glassnode Analyst James Check, shrimps are currently accumulating an average of 33,800 BTC per month. This is more than the number of new BTC issued by the network each month, which is 27,000 BTC.
“For every 1 new coin, Shrimp are taking 1.25 off the market,” wrote Check. “Crazy conviction on display.”
Shrimp accumulation in terms of BTC remains highest during the post-FTX-panic period when Bitcoin’s price dropped to a 4-year low of $15,500. However, in dollar terms, shrimps are currently buying Bitcoin at the fastest rate seen since the peak of the 2017 bull market.
“Five years later, they are stacking harder, faster, and in a more sustained manner, despite all the bullshit,” Check continued. “Bullish.”
In addition, Bitcoin “crabs” or entities holding between 1 and 10 BTC, are also accumulating an additional 22,400 BTC per month, accounting for 83% of the mined supply. The number of addresses holding over 1 BTC surpassed 1 million for the first time in May 2023.
Implications for Bitcoin’s Price Cycle
Comparing the accumulation to the mined supply is relevant for those who believe in Bitcoin’s halving, an event that cuts the supply issuance rate by half every four years, as one of the main factors responsible for the asset’s notorious 4-year price cycle. The next halving is scheduled for April 2024, although some analysts are skeptical that it will lead to another bull market.
Bullish Indicators for Bitcoin
Previous reports from Glassnode analysts have highlighted a transfer of wealth from investors with high time preferences to long-term holders, also known as HODLers. As of April this year, over 50% of all BTC in circulation hadn’t changed hands in over two years.
These shifting undercurrents may be reflected in Bitcoin’s price, which has appreciated by 83% this year and regained dominance in the crypto market at above 50%.
Analysts also believe there is a significant chance of the market getting approval for a Bitcoin Spot ETF from the U.S. Securities and Exchange Commission (SEC) this year, which could attract more investments into the asset.