Data from Glassnode, a blockchain intelligence platform, shows that the number of small retail investors has increased tremendously in terms of Bitcoin holdings. Ever since the collapse of FTX, small investors have been accumulating more BTC. This comes as unexpected since the current market is full of FUD. Moreover, we are in a bear cycle and such accumulation is not common during such circumstances. According to this data, the two main types contributing to this accumulation are the two smallest types of investors – shrimps and crabs. For your information, a shrimp is an investor that holds less than 1 Bitcoin, and a crab is an investor that holds less than 10 Bitcoin.
During the past 3 weeks, “shrimp” investors have accumulated over 96,000 Bitcoin. That translates to $1.6 billion with today’s Bitcoin price. This increase set an all-time high and today, shrimp investors account for more than 1.20 million Bitcoin. So, they own approx. 6.3% of Bitcoin’s circulating supply. Then we have “crab” investors who accumulated over 190,000 Bitcoin since the fall of FTX. This grows their collective portfolio by approx. $3 billion. Crab investors have also set a new all-time high balance increase, surpassing the one set in July when they accumulated 126,000 Bitcoin.
On the other hand, we have Bitcoin whales moving their Bitcoin around on a daily basis. As per the report, some whales have begun to sell their Bitcoin. Over the past month, whales have sold around 6,500 Bitcoin. When compared to the amount of Bitcoin accumulated by small retail investors, however, this is nothing.
In essence, data from Glassnode shows us that Bitcoin is getting more and more decentralized. The more small investors control the market, the more decentralized Bitcoin will become. Nevertheless, we have whales that are working hard towards promoting Bitcoin to the masses. The best example is El Salvador.
El Salvador Is Purchasing Bitcoin on a Daily Basis
From the 17th of November onwards, El Salvador has been purchasing Bitcoin daily. The President, Nayib Bukele, is known for his pro-Bitcoin approach and his attempts to make his country a leader in blockchain adoption. Such activity is always positive for the crypto industry, especially Bitcoin.