Bitcoin wallets holding under 100 BTC are accumulating BTC faster than the mining rate, creating pressure to tighten supply.
Wallets holding under 100 BTC, referred to as 'shrimp, crabs, and Bitcoin fish', are accumulating up to 19,300 BTC each month, far exceeding the new BTC mined at approximately 13,400 BTC/month, leading to a tightening supply phenomenon in the market.
MAIN CONTENT
The group of wallets holding under 100 BTC is accumulating Bitcoin at a faster rate than the mining output.
The phenomenon of BTC accumulation by small wallets contributes to limiting the circulating supply.
A noticeable impact on the market, which may affect the price and the balance of BTC supply and demand.
What is the group of wallets holding under 100 BTC and what is their impact?
According to Glassnode, the group of wallets holding under 100 BTC, referred to as 'shrimp, crabs, and Bitcoin fish', is playing an important role in accumulating Bitcoin in the market. This reflects a strong increase in the activity of small retail investors acquiring assets, thereby creating pressure to tighten the circulating supply. This is evidence of the growing influence of individual investors in the context of a volatile cryptocurrency market.
Why is the high accumulation of BTC by small wallets compared to mining output important?
Data shows that small wallets accumulate about 19,300 BTC monthly, while the newly mined Bitcoin is only around 13,400 BTC. This discrepancy leads to a strong withdrawal of funds from the market, limiting supply. According to reports, this phenomenon is ongoing, further proving that the demand to hold BTC is increasing, paving the way for supply shortages, which could positively impact prices in the long run.
The aggressive accumulation of BTC by small wallets surpassing the newly mined amount indicates a significant change in market behavior, with individual investors becoming the driving force behind a more limited Bitcoin supply than ever before.
Maria Xu, Research Director at Glassnode, 12/07/2024
How does the current Bitcoin mining situation affect supply?
Bitcoin mining generates about 13,400 BTC per month, reflecting the rate of new supply entering the market. However, when small wallet groups accumulate more than this, the actual circulating supply is being tightened. This could increase the value of BTC due to scarcity, while also necessitating adjustments to investment strategies and market forecasts.
How do small wallet groups contribute to the balance of supply and demand in the market?
The strong accumulation activity of wallets holding under 100 BTC has led to Bitcoin no longer being widely circulated, reducing the amount of BTC available for trading and short-term investment. This creates a temporary tightening of supply, thereby affecting liquidity and price volatility of BTC on exchanges. Analysts, after evaluating this trend, have predicted the potential price growth due to new supply and demand pressures.
The accumulation of BTC by small wallets is one of the signs that the Bitcoin market is gradually shifting towards a phase of supply constraint aimed at achieving stability and sustainable growth potential.
John Lee, Cryptocurrency market analyst, July 2024
Frequently Asked Questions
What are small wallets in the Bitcoin market?
Small wallets are typically those holding under 100 BTC, representing individual and small institutional investors.How does the Bitcoin accumulation activity of small wallets affect the market?
Creates a supply tightening phenomenon, with the potential to drive Bitcoin prices up.What is the current Bitcoin mining rate?
Why is the tightening of BTC supply important?
Where is the data on Bitcoin accumulation from wallets sourced?
Source: https://tintucbitcoin.com/vi-duoi-100-btc-tich-tru-vuot-dao/
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