Small bitcoin investors, nicknamed “shrimp,” show remarkable resilience despite market fluctuations. According to analyst Axel Adler of CryptoQuant, their numbers could increase by almost 9% in the short term, a trend that reflects their belief in the future of the queen of cryptos.
The resilience of small Bitcoin investors in the face of volatility
Shrimp, or investors holding less than 1 BTC, represent a key indicator of retail investor sentiment in the crypto market. Currently, more than 323,000 wallets fall into this category, and this figure could rise to 351,000, marking a growth of 8.67%, according to analyst Axel Adler of CryptoQuant.
This increase is partly driven by consistent accumulation, even at high price levels, with bitcoin recently crossing the $100,000 mark. “ Small investors appear to view these levels as an opportunity rather than a barrier “, explain the analyst. Their activity supports aggregate demand, a critical factor for asset stability and growth.
This trend dates back to a period when Bitcoin was trading around $61,000. Since then, the number of Shrimp addresses has jumped 21.9%, illustrating growing interest among individual holders.
A context of divergence between shrimps and whales
As the “shrimp” continues to accumulate, an opposite dynamic is emerging among long-term holders. These investors, often referred to as “whales,” have sold nearly 827,783 BTC over the past 30 days, signaling significant profit taking.
This divergence between accumulation by small investors and liquidation by large holders could indicate a potential inflection point in the market. While this may create short-term downward pressure, the sustained Shrimp activity reflects structural strength in the interest of retail investors.
Furthermore, the recent drop in selling pressure, combined with a rebalancing of profits made, could mitigate abrupt price fluctuations. According to a report from Bitfinex, future corrections could be less brutal than those recorded in early December.
In sum, the anticipated growth of Shrimp wallets underscores small investors' resilient confidence in bitcoin's future, even in the face of volatile market conditions. As long-term holders reevaluate their positions, the Shrimp's commitment could serve as a key stabilizer and driver for the next stage of Bitcoin adoption. A development to follow closely in the weeks to come.
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