Bitcoin has continued to show impressive strength, recovering roughly 100% year to date. In the past week alone, the leading cryptocurrency by market capitalization has grown by over 17%, perching above $30,000.

This growth comes from improving metrics, particularly from small-scale investors who have been demonstrating remarkable conviction and commitment by steadily growing their holdings, even in the face of the cryptocurrency market’s volatility and regulatory challenges.

On Wednesday, Glassnode’s lead analyst, “Checkmate”, sheds light on the significant impact these smaller investors are making in the market. In a tweet, the pundit highlighted Bitcoin shrimps, or addresses holding less than 1BTC, noting that they have been stacking sats at an impressive rate of 33.8k BTC monthly. According to the pundit’s analysis, for every new coin entering the market, shrimps are acquiring 1.25 BTC, effectively reducing the available supply.

“The last time the little guy stacked this hard was 2017 ATH, buying the top. Five years later, they are stacking harder, faster, and in a more sustained manner, despite all the bullshit. Bullish,” the pundit wrote, attributing the purchases to the “success of Bitcoin education visualized via on-chain data.”

On the other hand, Checkmate highlighted the so-called “Bitcoin crabs”, or investors who hold between 1 and 10 BTC. According to the pundit, this cohort has also aggressively accumulated coins, with a monthly rate of 22,400 BTC.

Remarkably, this accumulation represents an additional 83% of the mined supply, further emphasizing their growing influence in the market. The commitment these entities show, considering their higher investment range, highlights their belief in the long-term value of Bitcoin.

Notably, while Bitcoin shrimps and crabs persist in accumulating coins, a striking contrast can be observed with the behaviour of Bitcoin whales (entities holding 1000-5000 BTC) and humpbacks (entities holding over 5000 BTC), who have been distributing their coins over the past eight years or so.

That said, the increased institutional interest in Bitcoin has significantly motivated shrimps and crabs to accumulate coins aggressively. The recognition and adoption of Bitcoin by mainstream institutions such as Fidelity and Blackrock, as well as major banks, have sparked confidence among smaller investors, who see the potential for substantial returns and a hedge against traditional financial risks.

At press time, Bitcoin was trading at $30,276 after surging just over 2% in the past 24 hours. 

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Filed under: Bitcoin - @ July 9, 2023 7:12 pm