Bitcoin Shrimp Returns to Buying: Supply Share Reaches 6.9%

On-chain data shows that Bitcoin Shrimps have recently returned to accumulation as their share of the total supply has risen to 6.9%.

Bitcoin shrimp are now being purchased at a rate of 17,600 BTC per month

In new mail On X, on-chain analytics firm Glassnode discussed the recent trend in supply held by Bitcoin Shrimps. the “shrimp“refers to the smallest hands in the BTC market, who hold less than a full token of the cryptocurrency in their wallet balance.

Below is the chart shared by the analytics company that shows the trend in Bitcoin Shrimp supply over the past few years.

The value of the metric appears to have been climbing in recent days | Source: Glassnode on X

From the chart, it appears that the supply of Bitcoin Shrimp has increased recently and reached a value of 1.36 million BTC, which is equivalent to about 6.9% of the total circulating supply of the asset.

The increasing trend is a new trend for the metric, as it was following a downward trajectory earlier. This can be seen most easily by the second indicator that Glassnode attached to the chart: the changing position of the net shrimp supply.

This metric tracks the net amount of BTC entering or leaving shrimp-linked wallets. As is clear from the chart, the indicator turned negative last year while the cryptocurrency explored all-time highs.

This pattern indicates that shrimp earned some of their profits at higher prices. With Bitcoin turning towards a downward trajectory since the top, these investors have decided to resume their accumulation, meaning they consider current prices to present a profitable opportunity.

While some may consider small investors to be behind the market curve, they have actually shown similar behavior with respect to smart money in recent years. Perhaps the most prominent example of this is their strong accumulation spree that coincided with Bear market Lowest levels for 2022.

Since the recent return to buying, Shrimp’s net supply position change has risen to a value corresponding to inflows of 17,600 BTC per month into the group’s wallets, a significant level.

In some other news, the demand for Bitcoin Exchange Traded Funds (ETFs) It returned over the past week, the analytics firm noted in Another X mail.

The data for the netflows into the US BTC spot ETFs over the last few months | Source: Glassnode on X

Spot Bitcoin ETFs started the year with lower demand, but in the week of January 6th, inflows reached the $1.7 billion mark, higher than the $1.35 billion average the asset saw from October to December last year.

Bitcoin price

Bitcoin continued its recent downtrend over the past day, with its price now down to $91,700.

Looks like the price of the coin has been sliding down recently | Source: BTCUSDT on TradingView

Featured image from Dall-E, Glassnode.com, TradingView.com chart model