Cryptocurrency investors with a relatively low supply of Bitcoin ($BTC), the so-called “Shrimp” investors, have added over $1.5 billion worth of the flagship cryptocurrency to their wallets over the last few weeks.
According to on-chain cryptocurrency analytics firm Glassnode, ever since FTX collapsed, shrimp wallets – those who have less than 1 BTC in their balance – have seen an all-time high balance increase to now control over 1.21 million coins, equivalent to 6.3% of the flagship cryptocurrency’s circulating supply.
FTX’s collapse has seen cryptocurrency users rally to take custody of their own funds, as FTX’s management seemingly used customer funds to invest in various illiquid ventures, to the point that when there was a bank run on the platform it failed to fulfill withdrawals.
Per Glassnode, Bitcoin “crabs,” or those with up to 10 BTC on their balances, have also been aggressively accumulating the cryptocurrency, adding 191,600 BTC ($3.1 billion) over the last 30 days to hit a new all-time high.
Meanwhile, data from on-chain analytics firm Santiment has shown that just 6.95% of Bitcoin’s circulating supply is now sitting on exchanges, marking the first time since November 2018 in which less than 7% of Bitcoin’s supply was sitting on exchanges. In December 2018, Bitcoin’s price hit a bottom for that bear market.
Glassnode’s data further shows that smaller BTC investors are accumulating coins being sold by whales, or wallets with over 1,000 BTC on their balances. These investors have sold approximately 6,500 BTC worth over $105 million.
As reported, a popular cryptocurrency analyst has predicted a “massive bull run” is set to be seen in the near future after the flagship cryptocurrency formed a bottom pattern that was last seen back in 2015.
According to pseudonymous cryptocurrency analyst Trader Tardigrade, Bitcoin is currently in the same situation it was in during the 2015 bottom, as its inverted and logarithmic Moving Average Convergence divergence (MACD) indicator has moved above its zero line while its price fell onto a support zone which was created by the upper wick of a monthly candle seen in the previous cycle’s top.
Image Credit
Featured Image via Unsplash