Both buy on Bitcoin despite Bear Market
Shrimp that have bought Bitcoin in the last month have broken records for buying BTC.
In total, more than 200,000 BTC were purchased by these two groups of holders. The investment strategies that are currently underway show a certain unity between buying behavior for shrimp and whales in the bear market.
While the market has stabilized since its low point in mid-June, both shrimp and whales are following aggressive accumulation strategies.
In recent days, Be[In]Crypto has looked at the strategy led by whales, which have at least 1,000 BTC tokens, and observed that they are intensifying their investment strategy on Bitcoin.
In fact, their exposure increases week by week as the rest of the market leaves Bitcoin (BTC). Since January, whale exposure has therefore increased, with more than 140,000 BTC purchased in June. It now remains to be seen whether July will confirm the trend while price falls are again envisaged for the digital resource.
Pick up shrimp now, hold Bitcoin
When it comes to a completely different investor profile, we observe a similar strategy on the shrimp side. As a reminder, shrimp holders hold between 0 and 1 BTC. The latter has intensified its strategy and strengthened its exposure to Bitcoin with record purchases in June. According to data reported by Glassnode, a total of 60,400 bitcoins have been added to their wallet.
This is the most intense purchase made by this type of holders, who support Bitcoin with the whales in this bear market. Although this month of June is the worst month in the history of BTC, shrimp and whales have tried to support the asset at all costs.
Source: Twitter
These types of investors are at the extremes of each other. The smallest owners of Bitcoin and the richest currently have identical strategies.
Shrimp: Fragile
In general, small BTC holders are characterized as “fragile hands” in the market. Meanwhile, whales are portrayed as manipulators trying to get smallholders to abandon their stance while collecting insane amounts of cheap coins. In this bear market, however, it seems that the “fragile hands” resist and cling uncompromisingly to tokens while increasing their exposure.
Shrimp can therefore have an effect on Bitcoin, even though they together made “only” a little more than 42% of whale purchases in June.
According to two Glassnode charts, BTC token holders are constantly increasing. There are now several addresses that own 0.1BTC or 0.01BTC (addresses that therefore include shrimp).
Source: Twitter
These statistics show that the bear market coincides with new retail investors in cryptocurrencies entering the market, participating in shrimp purchases.
Young investors do not come out of their positions
According to a recent survey conducted by Etoro, young investors have maintained their positions by limiting sales, while 16% of them wanted to strengthen their exposure to Bitcoin by expanding their wallets during this crypto winter.
For the global marketing strategy for the trading platform Etoro, Ben Laidler, the shrimp strategy is largely due to the age of the investors.
“Cryptocurrencies are assets that are disproportionately held by young investors, who are more risk tolerant given that they have more than 30 years ahead of them to get their money back.”
Thus, according to Ben Laidler, younger investors have more risk appetite since they would have less to lose than older investors. Older investors cannot afford possible losses and prefer to cut their positions rather than preserve their exposure to market fluctuations.
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