The Bitcoin market has been in an accumulation phase since hitting a peak in mid-March. Initially, this phase was driven by institutional or long-term investors. Now, it seems that retail or short-term investors are stepping in to sustain the trend.
Small Investors Are Increasing Their Bitcoin Holdings: Why This Matters
In the past 30 days alone, investors have accumulated at least 88,000 BTC. Of this, at least 35,000 BTC (nearly 40%) were accumulated by “crabs” (investors holding 1 to 10 BTC) and “shrimps” (investors holding less than 1 BTC).
As “crabs” and “shrimps” play an important role in determining retail market sentiment, the new trend highlights the growing confidence of retail investors in the future of Bitcoin.
Why Bitcoin Leaving Exchanges Signals a Bullish Market
As much as 40,000 BTC has been stolen from exchange wallets.
The withdrawal could affect market liquidity. The current BTC accumulation rate is at least seven times the monthly issuance of 13,500 BTC, which could worsen liquidity conditions.
According to the latest data, only 26% of the circulating BTC supply is liquid.
Bitcoin Exchange Outflows: A Brief Overview
The BTC exchange outflow volume was 80,740.199 on August 27 and 12,532.97 at the beginning of September. This month it has been fluctuating mainly in the range of 53,709.400 to 8,574.31 and is currently maintained at 4,401.74.
In summary, the combination of strong retail accumulation and reduced Bitcoin liquidity bodes well for Bitcoin in the coming months.
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