Bitcoin ‘Shrimp’ Hit Hardest Since 2017: Glassnode

The smallest holders of bitcoin (BTC) poured money into the asset at a record pace this month, reflecting a shared sense of optimism in the bitcoin market for 2023.

On-chain data shows that “shrimp” – bitcoin addresses holding less than 1 BTC – haven’t hoarded it as aggressively in nearly six years.

small holders stack their sats

According to James Check, lead Glassnode analyst on Twitter, Shrimp are currently Deposit Average 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.

The check wrote, “For every 1 new coin, Shrimp is taking 1.25 coins from the market.” “The conviction of madness on display.”

#bitcoin Shrimp (<1 $BTC) 🦐 stacking at 33.8k $BTC per month.

Issue 🔵 is ~27.0k $BTC/month

For every 1 new coin, Shrimp is removing 1.25 coins from the market.

Insane confidence in performance. pic.twitter.com/2n7BdwBuWw

— _checkɱat 🔑 ⚡🌋☢️🛢️ (@_checkmatey_) 5 July 2023

In BTC terms, the most bullish accumulation phase for Shrimp was the period following the FTX-panic, when the bitcoin price dropped to a 4-year low of $15,500. However, in dollar terms, Czech noted that Shrimps is buying bitcoin at the fastest rate seen since the peak of the 2017 bull market.

He added, “Five years later, despite all the chatter, they are piling on more strongly, faster and more consistently.” “with speed.”

Meanwhile, bitcoin “crabs” – entities holding between 1 and 10 BTC – are collecting an additional 22,400 BTC per month, making up 83% of the mining supply. In May 2023, the number of addresses holding more than 1 BTC exceeded 1 million for the first time.

The mining supply comparison is relevant for those who believe that the bitcoin halving – an event that halves the rate of bitcoin supply issuance every four years – to the asset’s infamous 4-year price cycle. mainly responsible.

The next halving will be in April 2024 – although some analysts do not believe this will necessarily catalyze another bull market.

bitcoin bullish indicator

In earlier reports this year, Glassnode analysts pointed to “a continued transfer of wealth from high time preference investors toward HODLers.” According to the firm, as of this April more than 50% of all BTC in circulation had not changed in two years.

Bitcoin price may reflect some of these changing undercurrents, surging 83% this year, and reclaiming crypto market dominance above 50%.

Analysts are giving the market significant chances of bitcoin spot ETFs getting a nod ahead of the US Securities and Exchange Commission (SEC) this year, which is expected to welcome more money into the asset.