Bitcoin shrimps are capitulating: Is this the bullish sign BTC needs? 🦐📈

Bitcoin Investors Exiting as Total Amount of Holders Declines

Recent data from Santiment reveals a decrease in the Total Amount of Holders metric, reflecting a shrinking number of addresses on the blockchain holding a non-zero balance. This decline in holders may indicate a trend of investors exiting the market, clearing out their wallets.

The Total Amount of Holders metric tracks the total number of addresses on the blockchain with a non-zero balance.
An increase in this metric signifies potential cryptocurrency adoption, while a decrease suggests investors moving out of the asset by emptying their wallets.

Bitcoin Total Amount Of Holders Trend

The chart displaying the trend in Bitcoin Total Amount of Holders over the past few months indicates a recent drawdown, implying a net reduction in the number of investors holding the cryptocurrency.

The current drawdown in the Total Amount of Holders is the steepest since the all-time high in March.
It is speculated that the recovery above $67,000 might have prompted these holders to sell off their holdings.

Bitcoin Shrimps Selling Off

The chart also shows data on the total amount of Bitcoin supply held by investors with less than 0.1 BTC, known as shrimps. These small holders have recently decreased their combined holdings by 0.46% in the past week.

The decline in shrimps’ holdings coincides with the drop in the Total Amount of Holders, indicating that small investors may be liquidating their holdings at higher prices.
Larger entities in the market like sharks and whales may be acquiring these coins from retail investors, expanding their holdings.

Implications for BTC Price

Bitcoin’s price surge above $67,000 suggests a bullish sentiment, reminiscent of a previous recovery beyond this level. However, historical trends indicate that BTC’s bullish momentum may not be sustained.

Future Outlook

The recent trend of small wallets selling to larger entities could signify a potential bullish signal for Bitcoin according to Santiment. It remains to be seen whether this trend will ignite a new bullish phase for the cryptocurrency.