The number of Bitcoin wallets holding less than 1 BTC is projected to increase by nearly 9% in the coming weeks as small-scale investors continue to accumulate despite Bitcoin’s price surpassing the $100,000 mark.
“Despite being labeled as “shrimps,” these holders are showing strong confidence in Bitcoin’s growth, continuing to accumulate coins even at current price levels,” Adler stated in a Dec. 14 post on X.
Shrimp Wallets Key Metric for Gauging Retail Interest in Bitcoin
Shrimp wallets, which hold less than 1 BTC each, are seen as a key metric for gauging retail interest in Bitcoin.
According to Adler, there are currently 323,000 shrimp addresses, and this figure is expected to grow by 8.67% to reach 351,000 in the near term.
Adler noted that the increase in shrimp wallets began when Bitcoin was priced at $61,000, with 265,000 addresses at that time.
The average number of addresses holding less than 1 BTC currently stands at 323K (with BTC priced at $101K).
This growth began when BTC was at $61K, at which point there were 265K such addresses. Since then, the number of addresses has increased by 21.9%.
Since then, the number of shrimp addresses has surged by 21.9%, indicating strong retail investor participation during Bitcoin’s price rally.
At the time of writing, Bitcoin is trading at $101,549, according to CoinMarketCap data.
While small-scale investors continue accumulating, larger long-term holders—those who have held Bitcoin for at least 155 days—have been offloading their holdings.
Reports from Dec. 9 reveal that long-term holders sold 827,783 BTC in the past 30 days, signaling a possible shift in market sentiment.
Some analysts believe the recent sell-off by long-term holders could mark a market top, potentially turning sentiment bearish if buy-side demand weakens.
However, Bitfinex analysts argue that Bitcoin’s near-term price declines are unlikely to be as severe as the 10% drop experienced in early December.
They point to a reduction in realized profit-taking and sell-side pressure as signs of more moderate future corrections.
“With such a decline in realized profit and sell-side pressure, we can expect future declines to be less abrupt than the one experienced last week,” Bitfinex analysts stated in a Dec. 9 market report.
Vancouver Approves Motion to Become Bitcoin-Friendly City
Just recently, Vancouver city council officially approved a motion to explore becoming a Bitcoin-friendly city.
The motion, introduced by Mayor Ken Sim, was discussed and passed during a council meeting, marking a significant step toward integrating cryptocurrency into the city’s financial ecosystem.
The proposal includes assessing the feasibility of accepting taxes and fees in Bitcoin and converting a portion of Vancouver’s financial reserves into the digital asset.
The proposal came amid growing confidence in Bitcoin among corporate investors.
On Monday, MicroStrategy revealed that it has made another significant move in its Bitcoin accumulation strategy, purchasing 21,550 BTC for approximately $2.1 billion.
With this latest purchase, the business intelligence giant now holds a total of 423,650 BTC, valued at around $42 billion.
In a related development, the National Center for Public Policy Research, a Washington, D.C.-based think tank advocating for free-market principles, has called on Amazon to consider adopting a Bitcoin-focused corporate treasury strategy.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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Adler Jr (@AxelAdlerJr) December 14, 2024
