The Growing Smarts of Crypto Investors
A fascinating aspect of the cryptocurrency market is the variety of investor types, each represented by a different species. One such group is the “shrimps,” who are retail investors holding less than 1 BTC. However, recent on-chain analysis reveals that these shrimps are becoming more intelligent in their investment decisions.
Shrimps’ Behavior in Dips
Analyst _Checkmatey_ from Glassnode tweeted about the changing behavior of shrimps. Looking at a chart, we can observe the significant shift in small Bitcoin investors’ actions during two market cycles. In the past, shrimps bought large amounts of BTC during the end of the bull market, causing short-term investors to suffer losses.
But now, shrimps are accumulating more Bitcoin during dips in the market. They have accumulated 1.35 million BTC, which is 6.9% of the total supply. This behavior indicates growing adoption, education, and awareness among retail investors.
The Power of Crypto Education
Addresses in Profit as an On-Chain Signal
Another interesting observation is the percentage of BTC addresses in profit, which indicates the proportion of addresses with coins bought at a lower price than the current market value. This metric has recently re-tested the historical support level of 55-60%, signaling the potential start of a bull market.
Furthermore, there is a long-term increasing support line that has been validated in the past. The current chart is testing this support once again, increasing the likelihood of a bounce. If this occurs, it could serve as another on-chain signal for the beginning of a cryptocurrency bull market.
Hot Take: Shrimps Get Smarter, Bull Market Imminent
The behavior of shrimps in the crypto market indicates a positive trend of growing adoption, education, and awareness. Their intelligent buying during dips and the re-testing of historical support levels suggest the possibility of an impending bull market.
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