The youngest Bitcoin (BTC)-origin holders are posting money at a record pace this month, reflecting a sense of optimism shared across the Bitcoin market in 2023.
On-chain data shows that “shrimp” — Bitcoin addresses holding less than 1 BTC — haven’t accumulated significantly in nearly six years.
Small owners crammed their seats
According to Lead Glassnode Analyst James Check on Twitter, the shrimp are in right now pile up An average of 33,800 BTC per month. This is more than the 27,000 BTC the network releases new BTC each month.
“For every new coin, Shrimp takes 1.25% off the market,” Chick wrote. “Crazy conviction on screen.”
# Bitcoin shrimp (<1 BTC dollars) 🦐 You stack sessions at an average of 33.8k BTC dollars Per month.
Version 🔵 ~ 27.0k BTC dollars/ Month
For every 1 new coin, Shrimp takes 1.25 from the market.
Show crazy conviction. pic.twitter.com/2n7BdwBuWw
– _Checkɱate 🔑⚡🌋☢️🛢️ (_Checkmatey_) July 5, 2023
In terms of BTC, the fastest shrimp accumulation phase remains the post-FTX panic period, when the bitcoin price fell to a 4-year low of $15,500. However, in terms of the dollar, Chick notes that shrimp are buying bitcoin at the fastest rate since the peak of the 2017 bull market.
He continued, “After five years, they’re piling up stronger, faster, and in a more sustainable way, despite all the bullshit.” “rising”.
Meanwhile, Bitcoin “crabs” — entities that hold between 1 and 10 BTC — are collecting an additional 22,400 BTC per month, representing another 83% of the mined supply. In May 2023, the number of addresses containing more than 1 BTC exceeded 1 million for the first time.
Comparisons with miner supply are relevant for those who believe that the Bitcoin halving – an event that halves the Bitcoin supply issuance rate every four years – is mainly responsible for the infamous 4-year asset price cycle.
The next halving occurs in April 2024 – although some analysts don’t think it will necessarily spur another bull market.
Bitcoin bullish indicators
In reports earlier this year, Glassnode analysts noted “a steady transfer of wealth from investors with significant time preferences toward HODLers.” According to the company, no more than 50% of all BTC in circulation has been in circulation for more than two years as of April.
Bitcoin price may reverse some of these shifting bottom currents, rising 83% this year and regaining cryptocurrency market dominance above 50%.
Analysts are giving the market high odds for a Bitcoin Spot ETF after the US Securities and Exchange Commission (SEC) this year, which is expected to welcome more funds in the asset.
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