The number of Bitcoin wallets holding less than 1 BTC is forecasted to grow by nearly 9% in the coming weeks, as small-scale investors, often referred to as “shrimps,” maintain their buying momentum even with Bitcoin surpassing the $100,000 mark.
This trend highlights the increasing confidence of retail investors, according to crypto analyst and CryptoQuant contributor Axel Adler.
“Despite being labeled as ‘shrimps,’ these holders demonstrate remarkable confidence in Bitcoin’s growth, continuing to accumulate coins at current price levels,” Adler shared in a Dec. 14 post on X.
Shrimp Wallets: A Barometer for Retail Bitcoin Adoption
Shrimp wallets, which hold less than 1 BTC each, are widely regarded as a crucial metric for gauging retail interest in Bitcoin.
Currently, there are 323,000 shrimp addresses, with projections suggesting an 8.67% rise to 351,000 in the near term.
Adler noted that this surge began when Bitcoin’s price was at $61,000, with 265,000 shrimp addresses recorded at the time. Since then, the number of these wallets has grown by 21.9%, indicating sustained retail participation during Bitcoin’s historic rally.
At the time of writing, Bitcoin is trading at $101,549, according to CoinMarketCap data.
Retail Investors Keep Stacking as Long-Term Holders Sell
While retail investors continue to accumulate Bitcoin, a contrasting trend is observed among larger, long-term holders—wallets that have held Bitcoin for at least 155 days.
Recent reports from Dec. 9 reveal that long-term holders sold 827,783 BTC over the past 30 days. Analysts interpret this as a potential market-top signal, with concerns about shifting sentiment if buy-side demand weakens.
However, Bitfinex analysts suggest that the recent sell-off is unlikely to result in severe price corrections like the 10% drop in early December.
“With reduced realized profit-taking and sell-side pressure, future declines are expected to be less abrupt than the recent dip,” Bitfinex analysts stated in their Dec. 9 market report.
Vancouver Aims to Become a Bitcoin-Friendly City
In a significant policy development, Vancouver’s city council has approved a motion to explore becoming a Bitcoin-friendly city.
Introduced by Mayor Ken Sim, the motion aims to integrate cryptocurrency into Vancouver’s financial ecosystem. Key initiatives include:
- Accepting Bitcoin for Taxes and Fees: Assessing the feasibility of allowing citizens to pay taxes and municipal fees in Bitcoin.
- Bitcoin Reserves: Evaluating the possibility of converting a portion of the city’s financial reserves into Bitcoin.
This progressive step reflects growing confidence in Bitcoin adoption among institutions and governments.
Corporate and Institutional Support for Bitcoin Grows
The Vancouver announcement coincides with increasing corporate interest in Bitcoin.
On Monday, MicroStrategy disclosed another major purchase of 21,550 BTC for approximately $2.1 billion. With this acquisition, the company now holds a total of 423,650 BTC, valued at around $42 billion.
Additionally, the National Center for Public Policy Research, a Washington, D.C.-based think tank, has called on Amazon to adopt a Bitcoin-focused corporate treasury strategy, further underscoring Bitcoin’s growing role in institutional finance.
Conclusion: The Rise of Bitcoin Adoption
The surge in shrimp wallets reflects growing retail investor confidence, even as long-term holders sell portions of their holdings. With cities like Vancouver and corporations like MicroStrategy leading the charge in Bitcoin adoption, the cryptocurrency’s role in the global financial landscape continues to expand.
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