Bitcoin wallets holding less than 1 BTC are expected to increase by about 9% in the short term, as small investors continue to accumulate despite the asset surpassing the $100,000 mark, according to a cryptocurrency analyst.
"Although referred to as 'shrimp,' these holders still show strong confidence in Bitcoin's growth and continue to accumulate this coin even at the current price," Axel Adler, a contributor to CryptoQuant, said in a post on December 14 on X.
The trend indicates growth for Shrimp wallets
Shrimp wallets are an important indicator for cryptocurrency market participants to understand the level of interest from 'retail' in Bitcoin (BTC). Axel noted that the average number of Shrimp addresses currently holding less than 1 Bitcoin is at 323K, and he expects it to increase by 8.67% in the near term:
"Based on the current trend, I expect the number of addresses to increase to 351K in the near future."
Chart of the number of Shrimp Bitcoin addresses. Source: Axel Adler
Adler explained that this growth began when Bitcoin was trading at $61,000, with 265K Shrimp addresses. He mentioned that since that price point, the number of Shrimp addresses has increased by 21.9%.
At the time of publication, the price of Bitcoin was $101,549, according to data from CoinMarketCap.
Bitcoin was trading at $101,720 at the time of publication. Source: CoinMarketCap
While shrimp continue to accumulate, long-term holders — wallets holding Bitcoin for at least 155 days — have recently reduced their holdings.
On December 9, TinTucBitcoin reported that long-term holders sold 827,783 BTC in the past 30 days.
Long-term holders have reduced their Bitcoin holdings
Some analysts say that large sell-offs from long-term holders could be a sign of a potential peak, possibly turning markets into a bearish trend, and surprising traders as buying demand begins to decline.
However, according to a cryptocurrency analysis, Bitcoin's price in the short term is unlikely to drop as deeply as the recent 10% plunge, as selling pressure has significantly decreased since surpassing the six-figure mark.
"With such a decline in realized profits and selling pressure, we can expect future price drops to be less abrupt than a week ago," Bitfinex analysts said in a market report on December 9.
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