Retail Bitcoin Holders Outpace Miners, Bolster Market

In a show of unwavering conviction, retail Bitcoin holders with less than 1 BTC, fondly referred to as “shrimps,” are accumulating more coins each month than miners can issue, according to on-chain data. Glassnode’s lead analyst took to Twitter to disclose that these shrimps are stacking an average of 33,800 BTC monthly, surpassing the monthly issuance of new Bitcoin, currently set at 27,000 BTC.

Unprecedented Bitcoin Accumulation

This remarkable surge in buying activity highlights the high demand levels and points to strong support for Bitcoin prices. For every new coin issued, retail investors effectively remove 1.25 BTC from circulation, a pace of accumulation that surpasses even the frenzy witnessed during the 2017 bull run and the post-FTX-panic period. Observers note that this current buying frenzy by shrimps represents the highest dollar-value accumulation since the peak of the previous bull market. In contrast, miners have been contributing to selling pressure by offloading their coins on exchanges. Glassnode’s analysis reveals that miners have sent approximately $105 million worth of Bitcoin to exchanges, marking one of the largest USD-denominated transfers recorded.

Alongside the shrimps, “crabs,” who are holders of between 1 and 10 BTC, are also actively accumulating more coins, adding approximately 22,400 BTC to their holdings. Combined, shrimps and crabs hold around 83% of all Bitcoin in circulation, a testament to their consistent efforts in holding despite past market volatility and a clear indication of their bullish sentiment toward the currency.

Bitcoin Dominance Holds Strong

This sustained accumulation has led to a significant milestone in May 2023, as the number of unique addresses holding over 1 BTC surpassed 1 million for the first time. These developments occur in a year when Bitcoin’s price has seen substantial growth, appreciating by 83% and reaching as high as $31,000 by June 2023. Additionally, Bitcoin’s dominance remains around 50% of the total cryptocurrency market cap.

The involvement of major investment firms like BlackRock, which seek to expose their clients to the largest coin by market cap, adds to the growing confidence in the Bitcoin community. Although the U.S. Securities and Exchange Commission (SEC) has dampened hopes of approving a Bitcoin spot exchange-traded fund (ETF), the participation of traditional heavyweights such as BlackRock and Fidelity instills optimism in the market.