Delving into the world of cryptocurrency, it appears that Bitcoin’s smallest investors, fondly referred to as the ‘Shrimps,’ are once again accumulating the digital asset. As per an analysis provided by on-chain analytics firm Glassnode, these investors who hold less than one full token in their wallets have increased their share of the total supply to a notable 6.9%.
Bitcoin’s Small Investors are Resurfacing
Glassnode’s report gives a fascinating glimpse into the behavior of Bitcoin’s modest investors. The trend in the supply held by the Bitcoin Shrimps, which had been on a downward trajectory until recently, appears to have reversed direction. According to a chart shared by Glassnode, the current Bitcoin Shrimp Supply stands at a value equivalent to 1.36 million BTC, comprising around 6.9% of the entire circulating supply of the cryptocurrency.
The Shrimp Supply Net Position Change, an attached indicator, traces the net quantity of BTC entering or leaving the wallets linked with the Shrimps. It turned negative last year amid the crypto’s exploration of new all-time highs, suggesting that the Shrimps were extracting their profits at high prices. However, with Bitcoin veering towards a bearish trajectory, these investors have resumed their accumulation, implying they are viewing the current prices as opportune for profit.
Shrimps Display Smart-Money Behavior
Contrary to the belief that these small investors lag in the market, they have exhibited smart-money behavior in recent years. One notable example is their strong accumulation spree during the bear market lows of 2022. As of late, the Shrimp Supply’s Net Position Change reveals inflows of 17,600 BTC per month into the wallets of the cohort — a remarkable rate of accumulation.
Meanwhile, the demand for Bitcoin spot exchange-traded funds (ETFs) has rebounded in the past week. Starting the year with low demand, the U.S BTC spot ETFs saw inflows reaching the $1.7 billion mark in the week beginning 6th January, exceeding the average of $1.35 billion from October to December of the previous year.
Current State of Bitcoin Price
Based on recent trends, the price of Bitcoin seems to be on a downward spiral, with the cryptocurrency’s value plummeting to $91,700.
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FAQs
Who are the Bitcoin Shrimps?
The term ‘Bitcoin Shrimps’ refers to the smallest investors in the Bitcoin market. These individuals hold less than one full token of the cryptocurrency in their wallets.
What does the Shrimp Supply Net Position Change indicate?
The Shrimp Supply Net Position Change tracks the net amount of Bitcoin entering or leaving the wallets associated with the ‘Shrimps.’ It gives an idea about the behavior and investment strategy of these small investors.
Why is the accumulation behavior of Bitcoin Shrimps significant?
Bitcoin Shrimps’ accumulation behavior can indicate market trends and sentiment. For instance, an increase in their accumulation could signal a belief in the cryptocurrency’s future growth.
Observing these trends and understanding their implications is key to making strategic and profitable decisions in the volatile world of cryptocurrency. Stay informed and plan your investment strategy wisely.
