Bitcoin (BTC) shrimps aggressively accumulated the digital asset in the last 30 days, adding 35,000 BTC to their portfolios, according to Glassnode data analyzed by CryptoSlate.
Shrimps refer to wallets with less than 1 BTC, and their current accumulation rate is the fourth fastest in the market’s history. According to the data, their cumulative holding has surpassed 1.3 million BTC — equating to over 6% of the asset’s total supply.
With Bitcoin mostly trading between $22,000 to $28,000 in the last 30 days, shrimps doubled their accumulation as they have found the range a good entry point to increase their holdings.
Before now, the cohort was very active last year when the market recorded substantial losses. In December 2022, CryptoSlate reported that BTC shrimps accumulated 60,000 units of BTC within 30 days.
Are the current issues in the US pushing people to BTC?
Meanwhile, shrimp BTC accumulation in the current year coincided with increased fears of a banking crisis in the United States. During the past month, crypto-friendly banks like Silicon Valley Bank and Signature Bank collapsed, leading to fears of contagion for the US economy.
Besides that, there are also speculations that the US government was preparing to launch a central bank digital currency (CBDC), especially with its increased regulatory actions against the crypto industry.
Presidential candidate Robert Kennedy pointed this out in a tweet, saying the imminent launch of “FedNow” was the government’s first step to banning Bitcoin. In a separate tweet, Kennedy said BTC could protect holders from government overreach CBDC.
Separately, Coinbase former CTO Balaji Srinivasan predicted that BTC would replace the US Dollar as a global reserve currency, adding that USD was no longer too big to fail.
BTC shrimps absorption rate at 108%
A look at the yearly absorption rate showed that BTC shrimps have an absorption rate of 108%.
The absorption rate is a metric used to measure the annual change in supply as percentages of the total amount of issued coins. This means that the supply held by shrimp has increased by 108% of newly mined BTC over the past year.
Several analysts have argued that shrimp accumulation was suitable for the Bitcoin network because it would make the asset more decentralized over time.
Posted In: Bitcoin, Analysis, Research
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