Bitcoin's Small Investors Drive Recent Rally as Major Holders Sell Off
The recent significant increase in Bitcoin's price is attributed to small investors, while larger holders offload their assets into the market.
Bitcoin's Small Investors Drive Recent Rally as Major Holders Sell Off
Bitcoin has surged by $20,000 in the past week, motivated by increasing activity from small investors while major holders are selling off.
Bitcoin's blockchain data indicates a consistent accumulation trend among small wallets, also referred to as "shrimps." In contrast, larger holders, or "whales," who keep more than 10,000 BTC, seem to be offloading their assets onto the market, continuing this trend for the past couple of months.
The prices have fluctuated significantly as the asset tested close to the $90,000 mark before stabilizing around $87,400. Small investors are largely seen as the driving force behind this recent rally, while traditional narratives suggest that major holders generally dictate market trends.
Key Observations:
- Ongoing Accumulation: Investors holding less than one BTC continue to buy, maintaining their momentum from recent weeks.
- Distribution from Whales: Large investors have been reducing their positions, especially during price upswings.
- Long-Term Holders: Those holding Bitcoin longer than 155 days show bullish sentiment as they have not sold significantly, with the current supply they hold representing 78% of the total circulation.
Glassnode's analysis shows a comprehensive view of the cohorts involved in this market activity.
Market Supply Dynamics
Several factors, including stablecoin liquidity and rising Bitcoin transactions, indicate a strong interest from retail investors who are now becoming the "smart money" in this changing landscape.
