The world’s largest cryptocurrency Bitcoin (BTC) has come under massive selling pressure since the triggered FTX collapse. Bitcoin is currently trading down 2.30% at a price of $16,198 with a market cap of $311 billion.
However, one group of investors has been aggressively buying during this price correction. They are basically the Bitcoin Shrimp (holding <1 BTC) and the Bitcoin Crabs (holding <10 BTC).
On-chain data provider Glassnode states that Bitcoin Shrimp has seen an unprecedented surge in balances since FTX collapsed. Bitcoin shrimp has been gaining ground over the past fifteen days 96.2k $BTC to their total holdings. This cohort now holds a staggering 1.21 million bitcoins, which is 6.3% of the total circulating supply.
Courtesy Glassnode
Similarly, the Bitcoin crab cohort (holding <10 BTC) has also seen an aggressive balance surge over the past 30 days. In that time, this group of Bitcoin investors has added an amazing amount 191.6k $BTC to their holdings. This is also a convincing all-time high balance rise, overshadowing the July 2022 peak 126k $BTC/Month.
Courtesy Glassnode
On the other hand, bitcoin whales have been observed partially offloading their assets. BTC whales with more than 1,000 BTC holdings moved 6,500 bitcoins to exchanges last month as the FTX crisis unfolded. However, this distribution is still very small compared to the total Bitcoin whale holdings of 6.3 million BTC.
Bitcoin holders opt for self-custody
With the eruption of the FTX crisis, a large number of Bitcoin investors have turned to self-custody as trust in centralized players falls to a new low. Bitcoin supply on exchanges has dropped to levels not seen in the past four years. On-chain data provider Santiment reported:
Only 6.95% of #Bitcoin sits on exchanges noisy @santimentfeed Data. A gradual shift had already taken place $BTC Move to self-custody back to #Black Thursday (March 2020). But with that #FTX Fallout has accelerated this trend.
Courtesy: Santiment
While bitcoin currently holds the $16,000 support, some analysts are warning of another crash. Some market experts believe the contagion from the FTX collapse will continue to spread in the coming months. FTX domino effect could also push BTC price to $5,000.
Bhushan is a FinTech enthusiast and has a keen sense of understanding the financial markets. His interest in economics and finance draws his attention to the emerging blockchain technology and cryptocurrency markets. He is constantly in a learning process and motivates himself by passing on the knowledge he has acquired. In his spare time he reads thriller fiction novels and sometimes explores his cooking skills.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or the publication assumes no responsibility for your personal financial loss.
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