Research: Shrimps vs. Whales — Small holders accumulate Bitcoin as whales dump

Glassnode’s data has revealed that small, or retail, Bitcoin (BTC) holders are accumulating the flagship digital asset while whales have been dumping their holdings.

Retail holders own less than 10 BTC in their portfolio and are also referred to as “Crabs” or “Shrimps,’ while a whale holds 1000 or more Bitcoin in its portfolio.

Retail holders accumulated through market implosion

CryptoSlate research found that retail holders’ control of Bitcoin supply grew from 14% to 15.3% during the bear market, with an extra 1.3% unfazed by recent price action.

Reports have indicated that Bitcoin’s crash to the $20,000 range had made the asset “attractive and affordable” to this class of investors and retail holders were buying at the most aggressive rate in the market history at about 60,500 BTC per month.

Meanwhile, over Bitcoin’s history, this group has continued to grow and has been the backbone of the asset bottom price formation in bear market cycles.

In recent months, that growth has accelerated, even with the uncertain economic conditions and geopolitical issues plaguing the world. Moreover, the growth is coming at a time when Bitcoin’s price recorded a 66%% drop from its all-time high.

The data shows that retail holders are not only participating but are also contributing to the rapid growth of the network. It also shows that Bitcoin’s adoption continues to grow despite the impact of the bear market.

Whales are dumping

CryptoSlate research revealed that whales have been dumping Bitcoin since the beginning of the year.

Evidence of this is the recent Arcane research that revealed that institutional investors sold 236,237 BTCs when Terra’s ecosystem crashed. Tesla, a known institutional Bitcoin whale, said that it had sold 75% of its holdings during this period.

A recent tweet from Edris also lent credence to our research that whales have been selling their assets. Edris said, “large entities are now holding their coins at a loss, forcing some of them to sell before a bigger loss is inflicted on their portfolios.”

Despite the sales, whales still hold almost 10 million BTCs, over 4x of what retail holders have.

The graph below shows that if the dumping trend continued, retail investors could overtake whale holders, which would be a net positive for the network as more coins will be fairly distributed and reduce volatility in the long term.

The post Research: Shrimps vs. Whales — Small holders accumulate Bitcoin as whales dump appeared first on CryptoSlate.


Share on facebook
Share on twitter
Share on pinterest
Share on linkedin

Follow Us

Most Popular

Get The Latest Updates

Subscribe To Our Weekly Newsletter

No spam, notifications only about new products, updates.
On Key

Related Posts

Bitcoin Poised For Recovery, Relief Summer still In Play?

Bitcoin has been able to make a resurgence in recent weeks. The 25,000 USD barrier was recaptured by Bitcoin prices just two days ago, marking the first time since June 13th. Bitcoin Poised For New Rally In June, Bitcoin had its largest monthly decline since 2011, falling over 37.3% to a final value of $19,925.

Expert Reveals How “Fake Supply” Is Killing Your Bitcoin Gains

Caitlin Long, the founder and CEO of Custodia Bank, reveals that the BTC price should have hit somewhere close to six figures in the previous cycle. In an interview with Robert Breedlove’s “What Is Money” podcast, Long reveals that “paper bitcoin” has created a fake supply of BTC. The 21 Million Trap Bitcoin’s limited supply

Selling Bitcoin In Fear Of Mt. Gox dump? Here’s What Expert Suggests

Mt. Gox, a Japan based cryptocurrency exchange lost around 850,000 Bitcoins in an alleged hack back in 2014. It has been reported that the creditors will begin to receive some of the stolen assets. However, this event has raised vital concerns regarding the price stability of Bitcoin. Creditor to choose Bitcoin’s fate? As per reports,

Soneva’s Luxury Resorts Now Accept Crypto Payments

Luxury resort chain Soneva has reportedly begun accepting cryptocurrency payments at its resorts in the Maldives and Thailand. “Accepting cryptocurrencies as a payment method is another example of enabling our international guests to easily make payments from anywhere in the world.” Soneva Accepts Cryptocurrency Payments Luxury resort chain Soneva has reportedly begun accepting payments in