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The number of so-called Crab, Fish and Shark cryptocurrency addresses has stabilized after a spike in numbers as a result of the collapse of the cryptocurrency exchange FTX in early November, resulting in a drop in the price of bitcoin, and chain crypto analysis Company Glassnode suggests.
Crab addresses are bitcoin wallets from 1 to 10 BTC and are generally assumed to be avid retail investors (or HODLers). Fish addresses hold between 10 and 100 BTC, while shark addresses hold between 100 and 1,000 BTC. According to Glassnode, these two address cohorts generally consist of high net worth individuals, trading desks, and institutional-sized companies.
Following the demise of FTX, the number of Crab addresses jumped from around 760,000 to around 824,000 today. His 30-day change in Crab’s address number peaked at around 47,000 in early December, but has since declined to a few thousand.
Over the same period, the number of Fish and Shark addresses surged from 135,000 to 139,000 and from 13,700 to 14,050, respectively. However, similar to the Crab address trend, both 30-day rates of change have now dropped to near zero.
Impact of Slowing Crab, Fish and Shark Address Accumulation on BTC Price
Medium to large cryptocurrency investors, including large retail investors, high net worth individuals, trading desks, and institutions, are generally considered a well-informed cohort, and after the FTX collapse was clearly taking advantage of the falling prices of . buy a dip. Bulls would say this is a sign of confidence in Bitcoin as an asset class.
As these cohorts accumulated, the number of small shrimp and plankton addresses (less than 1 BTC) began to stagnate/decline. This shows that smaller, more informed investors are exiting the market and BTC is flowing to larger, more informed investors.
The stagnation in the latter group’s accumulation suggests that the trend has likely come to an end as Bitcoin’s price rebounded in January. can be seen as indicating that But shrimp and plankton address numbers have yet to begin to recover. Given that Bitcoin’s bull market has historically been marked by a surge in demand from smaller investors (and a subsequent surge in the number of smaller addresses), sentiment recovery is yet to come. It suggests that there is a long way to go.
Many Bitcoin bulls are not worried. Many on-chain and technical indicators are calling out that Bitcoin may have hit a bottom in this market cycle. – Subscription Opportunity”.