The current market uncertainty is forcing whales to sell Bitcoin (BTC). Shrimps, on the other hand, take advantage of the opportunity to accumulate more.
Bitcoin whales sell massive assets
According to Glassnode data, Bitcoin (BTC)’s accumulation trend score is currently flashing zero for whales. This shows that they have stopped buying more cryptocurrencies.
Bitcoin whales sell their assets / Source: GlassnodeThe data shows Bitcoin accumulation trends from April 2020 to August 2022. Analysis of the data shows that whales are slowing their BTC accumulations this month as they are dark red. So whales are largely selling net BTC.
cryptocoin.com As you follow, Bitcoin traded largely between $20,000 and $25,000 in August. Research has previously revealed that whales have accumulated coins in four different periods over the past two years. Bitcoin whales usually refer to addresses holding more than 1,000 BTC, representing large holders.
Score of tendency to hoard
The propensity to hoard score is a metric used to determine who is currently buying cryptocurrencies. A tool used specifically to detect market sentiment among various traders. The score is based on two factors. The balance change, which is the difference between an organization’s participation score, which is the total amount of tokens they hold, and the assets they hold over a period of time, usually a month. The accumulation score ranges from 0 to 1. In this context, if it is close to 0, it shows the distribution of cryptocurrencies. However, a score close to 1 indicates major holders in the network.
Shrimp accumulation slows down
As the whales stopped accumulating and sold their BTC holdings, the shrimps’ BTC accumulation slowed.
Bitcoin accumulation slows in shrimp / Source: GlassnodeAccording to the data, BTC addresses have fluctuated between 2 million and 2.3 million addresses this year. However, there has been a flat decline since July. Shrimps refers to holders with less than 1 Bitcoin in their wallet.
Meanwhile, in July, the industry saw the highest monthly accumulation for small Bitcoin holders since 2018, with shrimps buying 60,000 BTC. The difference in how the two groups react to the same market conditions shows how they perceive the situation. For whales, the current market uncertainty has forced them to sell their holdings, especially as Fed Chairman Jerome Powell promised more “pain” for the US economy. Bitcoin, on the other hand, is struggling to break the $20,000 – $25,000 range. However, the shrimps have identified it as the ideal entry point.
