Originally published on: December 15, 2024
A recent analysis suggests that Bitcoin wallets holding less than 1 BTC could see a significant increase of around 9% in the near future. Despite Bitcoin surpassing the $100,000 mark, small-scale investors are continuing to accumulate coins, showcasing strong confidence in the cryptocurrency’s growth.
These so-called “shrimp” wallets are becoming a crucial indicator for market participants to gauge the level of retail interest in Bitcoin. Currently, there are approximately 323,000 shrimp addresses holding less than 1 Bitcoin. According to crypto analyst Axel Adler, this number is expected to rise by 8.67% in the coming weeks.
The growth of shrimp wallets started when Bitcoin was priced at $61,000, with 265,000 shrimp addresses at that time. Since then, there has been a 21.9% increase in the number of shrimp addresses, despite fluctuations in Bitcoin’s value.
While shrimps are on a buying spree, long-term holders who have been holding Bitcoin for at least 155 days have been selling off their holdings. In the last month alone, long-term holders sold 827,783 BTC, raising concerns among some analysts about a market downturn.
Despite this selling pressure from long-term holders, the outlook for Bitcoin remains relatively positive. Analysts believe that future price declines may not be as drastic as the recent 10% plunge experienced in early December. With decreased selling pressure and profit realization, Bitcoin’s price fluctuations are expected to be more moderate in the near term.
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