- Bitcoin wallets holding less than 1 BTC have grown by 21.9%, now totaling 323,000 addresses.
- Shrimp addresses, holding less than 1 BTC could rise to 351,000, reflecting strong investor conviction.
- Long-term holders sold 827,783 BTC, valued at $82.6 billion, since Nov. 8, despite retail demand.
Bitcoin wallets holding less than 1 BTC are expected to grow by 9% in the near term as small-scale investors continue accumulating despite the asset surpassing $100,000. CryptoQuant contributor Axel Adler shared this outlook in a Dec. 14 X post, emphasizing the strong confidence among “shrimp” holders.
Currently, 323,000 Bitcoin addresses hold less than 1 BTC, marking a 21.9% increase from 265,000 addresses when BTC was priced at $61K. The growth reflects continued trust in Bitcoin’s future, even at the current price of $101,000.
Experts Predict Growth in Bitcoin Shrimp Addresses
Despite the current price levels, Bitcoin “shrimp” addresses, representing smallholders, have shown consistent and growing interest in the cryptocurrency. These investors continue accumulating BTC, believing in Bitcoin’s long-term growth potential.
Experts predict that the number of shrimp addresses could increase to 351,000 in the near future. The growing accumulation by smaller holders reflects a broadening support base, which could influence BTC’s future price trajectory. The correlation between BTC’s price and the growth of shrimp addresses further emphasizes investor conviction.
Axel highlighted that shrimp addresses, defined as those holding less than 1 Bitcoin, have grown by 21.9% since BTC was priced at $61,000, with the number of shrimp addresses expected to rise by an additional 8.67%. The increase in shrimp addresses is a significant indicator of “retail interest” in Bitcoin.
At the time of writing, Bitcoin’s price reached $101,715. Despite the accumulation by smaller holders, long-term holders, those holding BTC for over 155 days, CryptoQuant contributor Maartuun said in a Dec. 8 X post.
Retail Demand and Long-Term Holders’ Activity
Major players like MicroStrategy, led by Michael Saylor, bought 149,800 BTC during this period. Additionally, spot Bitcoin ETFs saw an inflow of 84,193 BTC. However, these purchases only accounted for 30% of the BTC sold by long-term holders. Despite this significant selling pressure, BTC’s strength remains intact, supported by ongoing retail demand.
Analysts suggest that retail demand, as indicated by Bitcoin’s rising Open Interest and the highest retail participation in futures trading, is crucial to BTC’s current market stability. According to CryptoQuant’s retail demand 30-day change chart, retail activity is at its highest point for the year, contributing to BTC’s ability to weather the selling pressure from long-term holders.
Some analysts warn that the ongoing sell-off by long-term holders might signal a potential market top. A bearish reversal could catch traders off guard as buy-side demand weakens. However, some analysts remain less concerned, suggesting that near-term BTC price declines won’t be as severe as past drops.
Despite the sell-off pressure, some analysts predict that BTC’s price won’t experience another sharp decline like the 10% drop in December, as per the report. According to Bitfinex analysts, the decline in realized profit and reduced sell-side pressure suggest that future price corrections will be less abrupt.
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