Unprecedented Accumulation: Bitcoin ‘Shrimps’ Lead the Charge, Indicating Bullish Market Sentiment in 2023.
In 2023, the Bitcoin market is experiencing a surge in optimism as even the smallest BTC holders are investing in the cryptocurrency at an unprecedented rate. Recent on-chain data reveals that Bitcoin addresses holding less than 1 BTC, commonly referred to as “shrimps,” haven’t demonstrated such aggressive accumulation in nearly six years.
Shrimps Acquiring Bitcoin At Record Pace, Glassnode Analyst Reports
Glassnode analyst James Check reports on Twitter that these shrimps are currently acquiring an average of 33,800 BTC monthly, surpassing the monthly issuance of new BTC by the network, which stands at 27,000 BTC.
“For every 1 new coin, Shrimp are taking 1.25 off the market,” wrote Check. “Crazy conviction on display.”
When considering Bitcoin, the period following the FTX panic stands out as the time when shrimps experienced the most rapid accumulation in BTC terms. This period coincided with a significant drop in Bitcoin’s price, reaching a four-year low of $15,500.
However, when examining the situation in dollar terms, Glassnode analyst James Check observed that shrimps are currently purchasing Bitcoin at a pace unmatched since the height of the 2017 bull market.
“Five years later, they are stacking harder, faster, and in a more sustained manner, despite all the bullshit,” he continued. “Bullish.”
“Crabs” Join Shrimps In Active Bitcoin Accumulation, Holding 83% Of New Supply
Additionally, entities known as “crabs,” which hold between 1 and 10 BTC, are also actively accumulating Bitcoin. They have been acquiring an extra 22,400 BTC per month, accounting for approximately 83% of the newly mined supply. Notably, in May 2023, the number of addresses holding over 1 BTC surpassed one million for the first time.
For those who attribute Bitcoin’s notorious four-year price cycle to its halving event, which reduces the rate of new supply issuance by half every four years, comparisons to the mined supply are relevant. However, some analysts are skeptical that the next halving, scheduled for April 2024, will necessarily trigger another bull market.
Glassnode analysts have previously highlighted a trend of wealth shifting from investors with short-term preferences to long-term HODLers. As of April, over 50% of all BTC in circulation had remained untouched for more than two years. These shifting dynamics may be reflected in Bitcoin’s price, which has appreciated by 83% this year, reclaiming a dominant position in the crypto market with a market share above 50%.
Analysts are giving the Bitcoin market favorable odds of receiving approval for a Bitcoin Spot ETF by the U.S. Securities and Exchange Commission (SEC) this year, which could attract additional investment into the asset.