Cryptonews - This trend reflects the growing confidence among retail investors. The number of crypto wallet addresses holding less than one full BTC is expected to rise by nearly 9% in the coming weeks as retail investors continue to buy more of the cryptocurrency despite its price crossing the $100,000 mark, reflecting growing confidence in the future of the industry leader, according to crypto analyst Axel Adler of CryptoQuant. “Despite being small investors known as ‘shrimps’, they are confident in the bright future of Bitcoin, as evidenced by their continued purchases and accumulation of Bitcoin even at its current price levels,” Adler wrote in a December 14 post on X.
Small investors' portfolios are a key measure of their interest in Bitcoin.
Small investors’ “shrimp” wallets—those holding less than a full bitcoin—are a key measure of their interest in BTC. According to Adler, there are currently 323,000 wallet addresses in this category, with their numbers expected to grow by 8.67% to 351,000 in the foreseeable future. He noted that their growth began when Bitcoin hit $61,000, when they represented 265,000 addresses, and their numbers have since increased by 21.9%, indicating that small investors have become more involved in the market during the Bitcoin bull run, which is currently trading at $101,549 at the time of writing, according to CoinMarketCap data.
The average number of addresses holding less than 1 BTC currently stands at 323K (with BTC priced at $101K).
This growth began when BTC was at $61K, at which point there were 265K such addresses. Since then, the number of addresses has increased by 21.9%.
Despite being labeled… pic.twitter.com/gK0AwOPWd1— Axel Adler Jr (@AxelAdlerJr) December 14, 2024
While small investors continue to buy more BTC, long-term holders — those who have held it for at least 155 days — have been selling their holdings. Reports on Dec. 9 indicated that long-term holders sold 827,783 BTC over the past month to take profits, indicating a possible shift in sentiment. Some analysts believe that this wave of selling may signal a shift in sentiment. Some see it as a sign that the current bull market cycle has peaked and that the general mood may soon turn pessimistic if buying momentum wanes. However, analysts at Bitfinex believe that the near-term decline in Bitcoin’s price may not be as severe as the 10% decline that sent its price down earlier this month, pointing to the decline in profit-taking activity and selling pressure as signs of a more moderate correction ahead. “With the decline in profit-taking activity, we expect the market to continue to move higher,” they added in a Dec. 9 market report. “Profit taking and selling pressure, we can expect future declines to be less severe compared to what we saw last week.”
Vancouver Approves Proposal to Become Bitcoin-Friendly City
Vancouver City Council recently officially approved a proposal by Mayor Ken Sim to explore the possibility of the city becoming Bitcoin-friendly, which was discussed and approved during a council meeting, marking a significant step towards the use of cryptocurrencies within its financial systems. The proposal includes evaluating the feasibility of accepting taxes and fees in Bitcoin and converting a portion of Vancouver’s cash reserves into digital assets amid growing confidence from institutional investors in the sector leader. Also, MicroStrategy revealed Monday that it has made another major move in its strategy to buy more Bitcoin balances, purchasing 21,550 BTC for about $2.1 billion, bringing its total holdings to 423,650 BTC, worth about $42 billion. In a similar development, the National Center for Public Policy Research, a Washington think tank that advocates free market principles, urged Amazon (AMZN) to adopt an approach where institutions hold strategic Bitcoin reserves within their public treasury assets.
View the original article
