Recently, Bitcoin has been growing steadily. On-chain data shows the rise in the Bitcoin shrimp supply, which is a good sign for the Bitcoin ecosystem. Glassnode provides an indicator called ‘Entities Supply Distribution’ that measures the total percentage of the Bitcoin supply that each group in the market is currently holding.

The ‘shrimps’ are holders with less than 1 Bitcoin in their wallet balances, and this cohort includes all entity groups in the 0 to 1 range. The data indicates that within the past year the ‘shrimps’ have added 1.78% of the cryptocurrency’s supply to their holdings; increasing their holdings up to 6.7% of the total Bitcoin circulating supply.

This represents an increase in the retail investor participation in the Bitcoin sector. Investors appear to have responded to a few key events such as the LUNA crash and the 3AC bankruptcy, and most significantly the FTX crash back in November, resulting in the rapid growth of the ‘shrimps’ holdings.

The rise in the retail investor participation is beneficial for the Bitcoin market as it increases the adoption of cryptocurrency. This provides a foundation for sustainable price movements and cryptocurrency as a whole. At present, Bitcoin is trading around $29,300, showing a 2% increase in the last week.



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