following a rapid increase in the number of Bitcoin Data from on-chain crypto analytics firm Glassnode shows that a number of so-called Crab, Fish, and Shark cryptocurrency addresses have stabilized in price triggered as a result of the collapse of the FTX cryptocurrency exchange in early November.
crab addresses Bitcoin Wallets with between 1 and 10 BTC and more are generally considered committed retail investors (or HODLers). Fish addresses hold between 10 and 100 BTC, while Shark addresses hold between 100 and 1,000 BTC. According to Glassnode, these two address cohorts are typically made up of high-net-worth individuals, trading desks, and institutional-sized entities.
in view of ftx collapse, the number of Crab addresses increased from about 760,000 to the current level of about 824,000. The 30-day change in Crab address numbers peaked at nearly 47,000 in early December, but has since dropped to only a few thousand.
Over the same time period, the number of fish and shark addresses increased from 135,000 to 139,000 and 13,700 to 14,050, respectively. However, as has been the trend with Crab addresses, the 30-day rate of change for both is now back around zero.
The Crab, The Fish And The Shark Know What The Bearish In Accumulation Means For The BTC Price
Medium- to large-sized crypto investors, including large retail investors, high-net-worth individuals, trading desks and institutions – generally viewed as a well-informed group – are clearly seeing an opportunity. Let’s use the post-FTX collapse-induced price drop as an example. buy dip, Bulls Would say that this is a show of confidence in bitcoin as an asset class.
At the same time these clusters were accumulating, the number of small shrimp and plankton addresses (less than 1 BTC) began to stabilize/decline. This is a sign that smaller and potentially less well informed investors were exiting the market, resulting in BTC flowing to larger, better informed investors.
The pause in the accumulation of the latter group suggests that this trend may have come to an end as the price of bitcoin rebounded in January. This can be seen as an indication that the dedication of small investors has come down. But shrimp and plankton address numbers have yet to resume. Given that bitcoin bull markets have historically been characterized by an increase in demand from small investors (and a subsequent increase in the number of short addresses), this suggests that sentiment still has a long way to go to recover.
Many bitcoin bulls are not worried. A whole host of on-chain and technical indicators are now shouting that bitcoin may be bottoming for this market cycle. The data-driven crypto-focused research provider recently shared 6 on-chain metrics that show bitcoin is currently “generation long”. -Term Buying Opportunity”.
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