Bitrabo Editorial
According to on-chain data from Glassnode, the supply of Bitcoin held by small investors (those carrying less than 1 BTC) has reached an all-time high value as these retail investors have continued to aggressively accumulate. The so-called “Bitcoin shrimps” have increased their holdings by 24,600 BTC in the past month alone, indicating that adoption of the coin is catching on.
What Are Bitcoin Shrimps?
Retail investors holding small amounts of Bitcoin are often referred to as Bitcoin shrimps. As this group represents a significant market segment, their accumulation behavior is closely monitored by experts in the industry. When the shrimp supply trends up, it implies that the shrimps are currently accumulating more Bitcoin, while a downtrend of the indicator suggests that these holders may be distributing their holdings.
The above graph displays the trend in the Bitcoin shrimp supply over the last few years, showing a recent acceleration in accumulation. Additionally, the graph features another on-chain indicator, called the “shrimp supply net position change,” which tracks the net change in the supply of these small investors over the past 30 days.
Positive Growth in Bitcoin Shrimp Supply Net Position Change
The shrimp supply net position change has only seen positive growth in the last few years, indicating that this market segment has been consistently increasing their Bitcoin holdings. There are two events, the 3AC bankruptcy in June 2022 and the FTX collapse in November 2022, where this indicator saw especially large spikes, likely due to larger holders withdrawing from centralized platforms and keeping their coins in a batch of smaller wallets.
The recent aggressive accumulation from retail investors can be a positive sign for Bitcoin’s adoption, as it suggests more people are becoming interested in the coin and holding onto it even during market ups and downs.
BTC Price
Currently, Bitcoin is trading at around $27,900, up 4% in the last week.
Featured image from Kanchanara on Unsplash.com, charts from TradingView.com, Glassnode.com