Bitcoin, the world’s largest cryptocurrency by market capitalization, has been experiencing a downward trend in recent weeks, dropping from its all-time high of over $69,000 in November to below $28,000 as of today. However, not all investors are deterred by the bearish sentiment, as some smaller holders, known as shrimps, have been accumulating more Bitcoin despite the price decline.
Shrimps Swim Against the Current
According to recent reports, shrimps are Bitcoin addresses that hold less than 1 BTC. The report cites data from Glassnode, a blockchain analytics platform, that shows that the number of shrimps has increased by 8.9% since November 10, reaching a new high of over 8.7 million addresses. This indicates that more retail investors are entering the Bitcoin market or increasing their exposure to the cryptocurrency.
Shrimp Entities (< 1BTC) continue their aggressive accumulation of #Bitcoin recording a monthly increase of +24.6K BTC, with only 224 / 5226 (4.3%) trading days recording a larger expansion, bringing the supply held by Shrimp to an ATH or 1.31M.
The intensity of accumulation is… pic.twitter.com/lPUlZmEP8E
— glassnode (@glassnode) May 28, 2023
The report also notes that shrimps have been more active than whales, who are Bitcoin addresses that hold more than 1,000 BTC. While whales have been selling their Bitcoin holdings in the past month, shrimps have been buying more Bitcoin at lower prices, showing their confidence in the long-term value of the cryptocurrency.
One possible reason for this divergence in behavior is that shrimps have a lower opportunity cost than whales, who may have other investment options or liquidity needs. Shrimps may also have a longer time horizon than whales, who may be more sensitive to short-term price fluctuations or market sentiment.
Another possible reason is that shrimps are more influenced by social media or peer pressure than whales, who may have more professional or institutional knowledge or experience. Shrimps may be following the advice or example of prominent Bitcoin advocates or influencers, such as Elon Musk, Michael Saylor, or Jack Dorsey, who has been vocal about their support for Bitcoin and its potential to revolutionize the world.
Whatever the reason, shrimps seem to be defying the market trends and showing their resilience and optimism in the face of volatility and uncertainty. Whether this strategy will pay off, in the long run, remains to be seen, but it is clear that shrimps are not giving up on Bitcoin anytime soon.