Retailers buying more bitcoin than miners can supply
In a bullish display of conviction, retail holders with less than 1 bitcoin, referred to as “shrimps,” are accumulating more coins than miners can issue every month, on-chain data shows.
More retailers are buying and holding bitcoin
In a tweet, Glassnode’s lead analyst revealed that shrimps are stacking an average of 33,800 bitcoin (BTC) monthly.
This surge of buying activity is noteworthy because it outpaces the monthly issuance of new bitcoin, which currently stands at 27,000 BTC.
This means that the retailers effectively remove 1.25 BTC from circulation per every new coin issued, which points to high demand levels that may support prices.
This accumulation pace surpasses that witnessed during the 2017 bull run and the post-FTX-panic period when Bitcoin’s price plummeted to a 4-year low of $15,500.
Observers note that the current buying frenzy by shrimps represents the highest dollar-value accumulation since the peak of the bull market.
While retail investors display steadfastness, miners have been contributing to selling pressure by offloading their coins on exchanges.
Glassnode’s analysis reveals that miners are sending approximately $105 million worth of bitcoin to exchanges, marking one of the most significant USD-denominated transfers on record.
Accumulation continues as bitcoin’s dominance stands at 50%
The Glassnode analyst also shared information on the activities of bitcoin “crabs.”
Bitcoin crabs are holders of between 1 and 10 BTC. As data shows, these holders are also stacking more coins, adding approximately 22,400 BTC.
Shrimps and crabs hold roughly 83% of all coins in circulation.
Despite past market volatility, these smallholders are showing consistent efforts in holding, indicating a bullish sentiment toward the currency. This development has led to a milestone, the number of unique addresses holding over 1 BTC surpassed 1 million for the first time in May 2023.
This accumulation comes when Bitcoin’s price has grown substantially, appreciating by 83% in 2023 and rising to as high as $31,000 by June 2023. At the same time, the coin’s dominance is around 50% of the total crypto market cap.
Major investment firms like BlackRock want to expose their clients to the world’s largest coin by market cap.
Although the United States Securities and Exchange Commission (SEC) has poured cold water on the possibility of approving a bitcoin spot exchange-traded fund (ETF), the involvement of traditional heavyweights like BlackRock and Fidelity is buoying confidence in the community.
