Record Rise for Small Investors: A Signal of Hope for Bitcoin?
Small Bitcoin investors, often called "shrimp," are showing strong determination despite market ups and downs. Analyst Axel Adler from CryptoQuant says their numbers could rise by about 9% soon, reflecting their belief in Bitcoin's future.
Investors holding less than 1 BTC are crucial for understanding retail investor mood in the market. Currently, over 323,000 wallets fall into this group, a figure that might reach 351,000, an increase of 8.67%, according to Axel Adler.
This rise is partly due to ongoing buying, even when prices are high, with Bitcoin recently surpassing $100,000. Adler notes, "Small investors seem to see these levels as a chance rather than an obstacle." Their activity helps support overall demand, which is important for the asset's stability and growth.
This trend began when Bitcoin was valued around $61,000. Since then, the number of Shrimp wallets has increased by 21.9%, showing rising interest among individual investors.
A gap between shrimps and whales
While small investors continue to buy, a different trend is seen among long-term holders or "whales." These big investors have sold about 827,783 BTC in the past month, indicating they are taking profits.
This gap between retail buying and large selling might suggest a turning point in the market. While it could create short-term downward pressure, ongoing activity from the Shrimps shows strong retail investor interest.
Additionally, a recent drop in selling pressure, along with a shift in realized profits, may reduce sharp price changes. A report from Bitfinex suggests that future corrections could be less severe than those seen in early December.
In short, the expected rise in Shrimp wallets highlights the strong confidence of retail investors in Bitcoin's future, even during volatile times. As long-term holders reassess their positions, Shrimp activity may become a key factor in stabilizing and advancing Bitcoin adoption. This is an important development to monitor in the upcoming weeks.