Data from Glassnode revealed that small or individual Bitcoin (BTC) holders are hoarding BTCs. Meanwhile, it was noticed that the whales were selling their assets. Here are the details…
Small Bitcoin investors buy BTC
Individual investors have less than 10 BTC in their portfolio. They may also be called “Crabs” or “Shrimp”. On the other hand, a whale holds 1000 or more Bitcoins in its portfolio. The data showed that individual owners’ control over Bitcoin supply increased from 14 percent to 15.3 percent during the bear market. That is, it found an extra 1.3 percent increase, unaffected by the recent price action.
Reports indicated that Bitcoin’s plunge into the $20,000 range makes the asset “attractive and affordable” for this class of investors. He also stated that individual investors are buying at the most aggressive rate in the history of the market, with around 60,500 BTC per month. Meanwhile, this group has continued to grow throughout Bitcoin history. It has been the backbone of asset bottom price formation during bear market cycles.
In recent months, this growth has accelerated despite the uncertain economic conditions and geopolitical problems plaguing the world. Moreover, the growth comes at a time when the Bitcoin price is down 66 percent from its all-time high. The data shows that retail owners are not only participating but also contributing to the rapid growth of the network. It also shows that Bitcoin adoption continues to rise despite the bear market impact.
Whales are pouring
Another study revealed that whales have been dumping their Bitcoins since the beginning of the year. Evidence of this comes as recent Arcane research reveals that institutional investors sold 236,237 BTC when Terra’s ecosystem collapsed. Tesla, a known corporate Bitcoin whale, said he sold 75 percent of his holdings during this period. As we reported on Kriptokoin.com, Tesla said that it bought a large amount of BTC in February of 2021.
https://twitter.com/TradingRage/status/1547185173581766656
A recent tweet by Edris also detailed about the whales selling their assets. Edris, “big companies now keep their cryptocurrencies at a loss. “It’s forcing some to sell before a larger loss occurs in their portfolios,” he said. Despite the sales, the whales still hold about 10 million BTC, which is more than 4 times the small investors. The chart below shows that if the dumping trend continues, individual investors could overtake whale owners. According to experts, this will be a net positive for the network. Because more money will be distributed fairly and will reduce volatility in the long run.
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