Bitcoin Shrimp and Crabs Accumulate Strongly After the FTX Drop

The world’s largest cryptocurrency Bitcoin (BTC) has come under massive selling pressure ever since the FTX collapse triggered. As of now, Bitcoin is trading 2.30% down at a price of $16,198 with a market cap of $311 billion.

However, one investor group has acted aggressively during this price correction. They are basically Bitcoin Shrimps (holding <1 BTC) and Bitcoin Crabs (holding <10 BTC).

On-chain data provider Glassnode explains that Bitcoin shrimp has witnessed an all-time high balance increase since the FTX collapse. In the last fifteen days, the Bitcoin shrimp have added 96.2k $BTC to their total holdings. This group now holds a staggering 1.21 million Bitcoins which equates to 6.3% of the total circulating supply.

Similarly, the Bitcoin crab cohort (with <10 BTC) has also seen aggressive balance increases over the past 30 days. During this period, this group of Bitcoin investors has added a staggering 191.6k $BTC to their holdings. This is also a compelling all-time high balance increase, while eclipsing the July 2022 peak of 126k $BTC/month.

On the other hand, Bitcoin whales have been seen partially offloading their assets. BTC whales with more than 1,000 BTC holdings have moved 6,500 Bitcoins to exchanges in the past month as the FTX crisis unfolded. However, this distribution is still very small compared to the total Bitcoin whale holdings of 6.3 million BTC.

Bitcoin holders choose self-storage

With the FTX crisis unfolding, a large number of Bitcoin investors have opted for self-storage as trust in centralized players falls to a new low. Bitcoin supply on exchanges has fallen to levels not seen in the last four years. On-chain data provider Santiment reported:

Only 6.95% off #Bitcoin sitting on stock exchanges, according to @santimentfeed data. A gradual shift had already taken place $BTC moves in self-storage back to #BlackThursday (March 2020). But with #FTX fallout, this trend has accelerated.

While Bitcoin currently has support at $16,000, some analysts are warning of further falls. Some market experts believe that the contagion through the FTX collapse will spread further in the coming months. The domino effect of FTX could also push the BTC price to $5,000.

Bhushan is a FinTech enthusiast and has a keen flair for understanding the financial markets. His interest in economics and finance draws attention to the emerging markets of blockchain technology and cryptocurrency. He is continuously in a learning process and stays motivated by sharing his acquired knowledge. In his spare time, he reads thriller novels and sometimes explores his culinary skills.

The content presented may include the author’s personal opinion and is subject to market conditions. Do market research before investing in cryptocurrencies. The author or publication has no responsibility for your personal financial loss.