Bitrabo Editorial
Recent on-chain data suggests that smaller Bitcoin investors, known as shrimps, have been selling their holdings. This trend could have implications for the cryptocurrency.
Decrease in Bitcoin Total Amount of Holders Due to Retail Investors Exiting
Reports from on-chain analytics provider Santiment reveal a decline in the Total Amount of Holders metric. This metric tracks the total number of addresses with a non-zero balance on the blockchain.
An increase in this metric usually indicates growing cryptocurrency adoption, while a decrease suggests investors are withdrawing from the asset by emptying their wallets.
Here is a chart illustrating the recent trend in Bitcoin Total Amount of Holders:
The graph depicts a recent decline in the Bitcoin Total Amount of Holders, indicating a net outflow of investors from the cryptocurrency.
This drop marks the most significant decrease since the all-time high in March, likely triggered by the recent price recovery above $67,000, tempting holders to sell.
The chart also includes data on the total Bitcoin supply held by investors with less than 0.1 BTC, often referred to as shrimps. These retail investors have recently reduced their holdings by 0.46% in just a week.
It appears that the decline in the Total Amount of Holders aligns with these smaller investors liquidating their positions, possibly due to doubts about the sustainability of the current price recovery.
Analytics firm Santiment finds that when small wallets sell to larger entities, like sharks and whales, it tends to be a positive signal for Bitcoin’s future performance. The outcome of this trend will determine whether it acts as the bullish catalyst Bitcoin needs.
Bitcoin Price Movement
Bitcoin’s price has surged above $67,000, a level not seen in nearly a month. Previous recoveries above this threshold have been followed by a loss of bullish momentum. The future trajectory of Bitcoin’s price remains uncertain.