New investors entering the Bitcoin market are now seen as indifferent to prices and are buying it at a faster rate than miners can produce, which could create favorable conditions for a price increase in Bitcoin.
Strong growth from small investors
According to Bitfinex's market report on Monday, the total balance of these investor groups is increasing at a rate of about 19.3K BTC per month.
Analysts have pointed out that Bitcoin holding groups such as shrimp (<1 BTC), crabs (1–10 BTC), and fish (10–100 BTC) are rapidly expanding their portfolios much faster than the current monthly issuance rate of about 13,400 BTC since the halving event in April 2024.
'Two bids from this segment have been enough to absorb the entire new supply,' they emphasized, while stating that these investors are continuously buying regardless of prices:
The accumulation trend at this group level reinforces the overall bullish narrative that new investors entering the Bitcoin market are those who are indifferent to prices and are persistently accumulating with limited time frames.
Warning about future volatility
This strong accumulation is taking place in the context of Bitcoin continuing to set new all-time highs. On Monday, Bitcoin reached a new all-time high of $122,884 before adjusting to $118,821 at the time of publication, according to data from Bitcoin Magazine.
Despite strong bullish momentum, some experts warn of potential volatility in the future. Marcin Kazmierczak, co-founder of Redstone, shared that while many cryptocurrency analysts are currently predicting short-term targets for Bitcoin up to $140,000, 'history has shown that parabolic movements often lead to strong corrections.'
Kazmierczak also emphasized that the large number of leveraged positions liquidated in the past 24 hours is a reminder that 'volatility has always been Bitcoin's companion.' Nearly $430 million in short Bitcoin positions were liquidated as prices surpassed $121,000, according to data from CoinGlass.
He recommends that investors approach upcoming Bitcoin price milestones cautiously, not with excitement, warning that the bullish sentiment 'requires careful position sizing.'
The Fear & Greed Index in cryptocurrency, which measures the overall market sentiment, recorded a 'Greed' score of 74 on Monday, marking the fifth consecutive day in this state.
Finally, cryptocurrency trading firm QCP Capital noted, 'Bitcoin's relentless rally shows no signs of fatigue, surging strongly through $122K as momentum continues to build.'
