As a seasoned analyst with over two decades of experience in financial markets, I have witnessed numerous bull and bear cycles. The current trend in Bitcoin, specifically the growth of shrimp wallets holding less than 1 BTC, is intriguing.
According to a cryptocurrency expert’s analysis, it is anticipated that the number of Bitcoin wallets containing less than one Bitcoin will increase by approximately 9% in the short term. This growth is attributed to small-scale investors continuing to acquire the digital asset even as its value surpasses $100,000.
Axel Adler, a contributor to CryptoQuant, noted in a recent post on Dec. 14 that these entities referred to as ‘shrimps’ are displaying high confidence in Bitcoin’s expansion. They are still amassing Bitcoins even at the current prices,” is one possible way of paraphrasing the original sentence.
Trend suggests upward movement for Shrimp wallets
Shrimp wallets serve as a significant gauge for crypto investors to assess the degree of “public interest” in Bitcoin (BTC). Axel stated that there are approximately 323,000 Shrimp accounts currently holding less than one Bitcoin, and he anticipates this figure to rise by an additional 8.67% soon.
“Given the current trend, I expect the number of addresses to rise further, reaching 351K in the near future.”
Adler clarified that the expansion started as Bitcoin traded at approximately $61,000, involving around 265,000 shrimp addresses. He noted that the count of these shrimp addresses has risen by a notable 21.9% since then.
At the time of publication, Bitcoin’s price is $101,549, according to CoinMarketCap data.
As shrimp keep piling up, those who have held Bitcoin for more than 155 days (long-term holders) have been selling lately.
On Dec. 9, CryptoMoon reported that long-term holders sold 827,783 BTC over the past 30 days.
Long-term holders have been offloading their Bitcoin
Long-term investors heavily cashing out might indicate a possible market peak, making it risky for traders as they may find themselves unprepared when the demand from buyers decreases and the market becomes less bullish.
As a researcher delving into the realm of cryptocurrencies, I’ve come across an analysis suggesting that future Bitcoin price drops may not reach the depths of the recent 10% dive, given that the selling pressure has noticeably diminished since Bitcoin surpassed the $100,000 mark for the first time. This easing of selling pressure could potentially indicate a more stable market environment moving forward.
Given the drop in actual earnings and the influence of sellers, it’s likely that any further decreases will happen more gradually compared to the sudden dip we saw recently,” Bitfinex analysts suggested in their December 9 market update.
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2024-12-15 05:08