Bitcoin "Shrimp" Wallets Expected to Surge by 9% as Small Investors Continue Accumulating

Bitcoin wallets holding less than 1 BTC, often referred to as “shrimp” wallets, are showing signs of growing conviction in the cryptocurrency’s long-term prospects, according to a recent analysis. Despite Bitcoin's price surpassing $100,000, these small-scale investors are continuing to accumulate, with a forecasted 9% increase in the number of shrimp wallets in the near future.

Axel Adler, a contributor at CryptoQuant, highlighted this trend in a Dec. 14 post on X, noting that these “shrimp” holders remain confident in Bitcoin's upward trajectory. “Despite being labeled as ‘shrimps,’ these holders are showing strong confidence in Bitcoin’s growth, continuing to accumulate coins even at current price levels,” Adler explained.

Shrimp Wallets Show Strong Retail Interest

Shrimp wallets are a key indicator of retail interest in Bitcoin, with their numbers reflecting the involvement of smaller investors in the market. Currently, the number of shrimp wallets holding less than 1 BTC stands at approximately 323,000, a figure Adler predicts will increase by 8.67%, bringing the total to 351,000 in the near term.

This trend of accumulation began when Bitcoin was trading around $61,000, with just 265,000 shrimp addresses. Since then, the number of these wallets has surged by 21.9%, illustrating the growing confidence of small investors in Bitcoin’s future.

At the time of publication, Bitcoin’s price was hovering around $101,549, according to CoinMarketCap data.

Long-Term Holders Offloading Bitcoin

While shrimp wallets continue to accumulate Bitcoin, a different trend is emerging among long-term holders—those who have held Bitcoin for at least 155 days. These investors have been offloading their holdings in recent weeks, with a significant amount of Bitcoin sold in the past 30 days.

On Dec. 9, Cointelegraph reported that long-term holders had sold a total of 827,783 BTC in just the last month. This shift has raised concerns among some analysts, who believe that the selling pressure from long-term holders could signal a potential market top, possibly leading to bearish conditions and catching traders off-guard when demand starts to wane.

Analysts Expect Less Abrupt Declines

Despite the significant selling activity from long-term holders, some analysts believe that Bitcoin’s future price dips may not be as sharp as the recent 10% plunge observed in early December. According to a report from Bitfinex analysts on Dec. 9, the selling pressure has eased considerably since Bitcoin first surpassed the $100,000 mark. As a result, any future declines are expected to be more gradual, with less intense market movements.

“With such a decline in realized profit and sell-side pressure, we can expect future declines to be less abrupt than the one experienced last week,” the Bitfinex report stated.

Conclusion

The rise in the number of shrimp wallets reflects a broader trend of retail investors maintaining strong faith in Bitcoin, even as its price reaches new highs. While long-term holders have recently started selling, the overall sentiment from small investors remains positive, with many continuing to accumulate Bitcoin. As the market continues to evolve, analysts predict that any future dips in Bitcoin’s price may be more measured, indicating that the asset’s upward momentum may be sustained for the time being.