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Bitcoin’s small investors drive confidence despite market volatility

As Bitcoin surpasses $100,000, small investors, referred to as “shrimps,” are amassing coins, thereby showcasing the market’s resilience. Analysts predict a 9% increase in shrimp wallets, as long-term investors begin to sell off.

Small Bitcoin investors, known as “shrimps,” are continuously increasing their holdings, indicating strong confidence in the cryptocurrency sector. Analysts predict a 9% increase in wallets holding less than one BTC in the near future, despite Bitcoin’s price surpassing $100,000. Analysts believe this pattern reflects ordinary investors’ strong conviction in Bitcoin’s long-term potential.

According to data, there are already approximately 323,000 shrimp wallets, with this figure expected to increase to 351,000 in the following months. Shrimp wallets have increased by 22% since the beginning of this expansion, when Bitcoin’s value was at $61,000, indicating the continued interest of small-scale investors.

While these smaller investors continue to accumulate Bitcoin, long-term holders—those who have held it for 155 days or more—have begun to sell their holdings. Over the last month, long-term holders have sold around 827,783 BTC, raising fears among analysts about a probable market top. Some believe that this selling tendency may lead to large price revisions if buying demand weakens.

However, experts point out that the recent dip in selling pressure suggests that any future price drops may be less severe than previous corrections. The lessened profit-taking activity reassures investors about the short-term stability of the markets.

Bitcoin’s current trading price is around $101,700, indicating that market activity is ongoing despite recent selling by long-term holders. However, the continuous rise of shrimp wallets demonstrates retail investors’ unwavering faith and serves as a promising indicator for Bitcoin’s future direction. This continuous accumulation among smaller investors is likely to play an important role in maintaining Bitcoin’s market momentum in the long term.

author avatar
Sagar Saini
A dedicated freelance blogger with a strong passion for finance and business, With a keen interest in the world of cryptocurrency.
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