Bitcoin has witnessed a staggering $20,000 gain in the past week, and a closer analysis of blockchain data sheds light on the groups driving this rally. Small holders, or “shrimps,” are accumulating Bitcoin at a rapid pace, while large-scale holders, known as whales, are taking profits as prices climb.
Bitcoin (BTC), the largest cryptocurrency by market cap, briefly approached $90,000 on Tuesday before settling near $87,400. This marks a 27% increase over the past seven days, according to data from CoinDesk.
Looking broadly, much of the recent buying action has been centered on Coinbase, the Nasdaq-listed exchange commonly seen as a signal for U.S.-based institutional interest. However, a more detailed look reveals that smaller retail investors are the ones driving the accumulation trend as they seek to capitalize on Bitcoin’s rising momentum.
“Shrimps” Lead the Accumulation Wave
Glassnode data breaks down Bitcoin’s holders into categories ranging from “shrimps” (less than 1 BTC) to “humpback whales” (more than 10,000 BTC). A metric close to one indicates accumulation within a group, while values closer to zero reflect distribution.
For the past two months, all groups except humpback whales have been actively accumulating Bitcoin, coinciding with the asset’s rise from about $55,000 in September to nearly $90,000 in November.
This trend challenges the long-held view of whales as the “smart money” in the crypto market. Instead, while large holders are selling, retail investors appear to be strategically increasing their holdings. CoinDesk analysis suggests that, over time, smaller investors have started to show behaviors traditionally associated with “smart money.”
Demand Consistently Outpacing Supply
Aggregating data from all categories, including miners, exchanges, and retail investors, shows that 26,000 BTC have been accumulated over the past 30 days alone. This consistent buying trend has now been ongoing since September, with demand outstripping supply growth and issuance over the past three months.
Distinct Behaviors Between Long- and Short-Term Holders
Glassnode classifies long-term holders (LTHs) as those who’ve held Bitcoin for more than 155 days. Historically, LTHs have been known to sell into price strength, such as during the bull markets in 2017 and 2021, while accumulating during downturns.
Currently, however, LTHs appear to be holding steady, suggesting they anticipate higher prices in the near future. LTHs now control 78% of the circulating Bitcoin supply, equating to roughly 15 million coins. In the past month, they’ve reduced their holdings by only about 3%, a stark difference from the 20% reductions seen in previous bull runs.
In contrast, short-term holders (STHs)—investors who’ve held Bitcoin for fewer than 155 days—are more likely to buy during peak excitement, as seen with Bitcoin’s 10% surge on Monday. Although STH holdings are near historic lows, there was a slight uptick recently. During past bull markets, STHs have held as much as 35% to 50% of Bitcoin’s total supply.
This version keeps the core data intact while presenting it in a fresh format.
