“Can not stop, will not stop” – Bitcoin holders buy dip to $ 20K BTC

by · July 11, 2022

Everyone expects a new Bitcoin (BTC) capitulation event, but data suggests that mass buying has already begun.

In a Twitter thread on June 29, Checkmate, a leading chain analyst at the computer company Glassnode, drew attention to who in Bitcoin is actually stacking the rate.

Shrimp or whales, Bitcoin hodlers stack rate

Bitcoin sales have made headlines for several weeks and have even begun to include long-term holders (LTHs) – those who have been guarding their coins for 155 days or more.

Speculators do not take the blame for the current BTC price weakness, but contrary to popular belief, many market participants actually add to their BTC allocations.

By dissecting Glassnode data, Checkmate revealed that both the smallest and largest players are in buy mode for around $ 20,000.

By dividing the hodler base into four sections: “shrimp”, “crabs (otherwise known as classic hodlers)”, “sharks” and whales, the figures give surprising reading.

Both shrimp and crabs, the smallest retail investors with 10 BTC or less in their wallets, not only stack, but make it more intense than ever since the first time BTC / USD reached $ 20,000 in 2017.

“Can not stop and will not stop,” wrote Checkmate describing the act of accumulation.

“Shrimp adds to the $ BTC balance at the highest rate since 2017. NOTE. Same price, different trend direction. I do not underestimate the smart belief of the little guy in Bitcoin.

At the other end of the spectrum, whales similarly remove coins from exchanges to private wallets at a pace that Checkmate calls “full HIM.”

The main exception is in the middle: the sharks or institutional units with a high net worth of between 10 and 1000 BTC to their name.

Although this forms a large part of the network, hodders have borne the brunt of macro changes, Checkmate claims, either being liquidated on positions or having their fortunes erased in DeFi games.

Even here, however, the general trend is up.

“The balances are increasing, but nothing special. Given the TradFi and crypto-shit show -> I suspect these guys are heavily influenced by deleveraging and margin calls, “he wrote.

Analyst $ 25 billion exchange of stablecoin reserves

Earlier this week, Glassnode also showed that 30-day cumulative BTC outflows from stock exchanges had reached a new peak.

Related: 80,000 Bitcoin millionaires were wiped out in the great cryptocurrency of 2022

For Ki Young Ju, CEO of the other research firm CryptoQuant, the signs that capital is waiting on the sidelines to distribute back to crypto are also clear.

Ki saw the only 11% reduction in the combined stablecoin market value compared to Bitcoins 70% from all-time highs.

“Stable coins that are in stock exchanges are now worth half of the Bitcoin reserve,” he added on June 30.

“We have $ 25B of charged bullets, which could cause cryptocurrencies to go up. The question is when, not how.”

The situation is complicated by the fact that the stablecoin market value ratio on stock exchanges has remained virtually constant for two years, while the actual market value has increased during that period.

The supply ratio for Bitcoin exchanges has meanwhile been much more volatile.

Bitcoin exchange supply ratio vs BTC / USD chart. Source: CryptoQuant

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