Bitcoin has been facing a rough patch lately, with its value plummeting over the past month. However, a recent tweet from Santiment, a blockchain data analytics firm, has sparked hope for the digital currency’s recovery.
According to Santiment, whale addresses holding 100-1k BTC are back in accumulation mode, meaning they are buying up more Bitcoin. In fact, in just the past two days, these whales have added a staggering 20,007 BTC to their wallets.
This news has brought some optimism to the Bitcoin community, as the currency has struggled to break out of its downward trend. On Tuesday, Bitcoin experienced some ups and downs, with a brief jump above the $30.5k mark, followed by a dip back to the $30.0k support level.
It is uncertain whether the recent increase in holdings by large BTC investors will have a significant impact on the cryptocurrency’s future. Nonetheless, it is a positive development in a market that is currently shrouded in doubt.
Bitcoin Shrimp Increase On-Chain Balance
Meanwhile, Glassnode, a blockchain data analytics firm, shared via a tweet that there has been a significant increase in the on-chain balance for small-scale Bitcoin holders, also known as “Bitcoin Shrimp,” who hold less than 1 BTC.
This growth in accumulation behavior has been observed after the recent price surge of LUNA, which indicates a change in the investment strategy of retail participants.
According to Glassnode’s research, retail investors are absorbing BTC at an accelerated rate and have increased their relative share of the circulating supply by 1.78%, indicating a shift in the market dynamics. Smaller investors are becoming more active participants in the cryptocurrency space.
Glassnode’s data, which was obtained using advanced blockchain analysis tools, suggests that this increase in on-chain balances for smaller BTC holders could lead to increased market volatility, as they are more likely to buy and sell Bitcoin in response to market fluctuations.
It will be interesting to see how these changes in accumulation behavior for small-scale BTC holders will impact the broader market dynamics as the cryptocurrency market continues to evolve.
Glassnode’s insights into the on-chain behavior of Bitcoin investors provide a unique perspective on the cryptocurrency market, which traditional financial reporting cannot match.
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