Everyone expects another bitcoin (BTC) capitulation event, but the data suggests that the massive buying has already begun.
In a Twitter thread on June 29, Checkmate, principal on-chain analyst at data firm Glassnode, has drawn attention to who is buying bitcoin.
Be it shrimp or whale, bitcoin hodlers are buying
The sale of bitcoin has been in the news for weeks, and has even started to include long-term holders (LTHs), who have been holding their coins for 155 days or more.
Contrary to popular opinion, many market participants are increasing their BTC allocations.
Dissecting Glassnode data, Checkmate has revealed that both the smaller and larger ones are in buy mode at around $20,000.
Perusing the holders base into four sections: “shrimp”, “crabs (aka classic hodlers)”, “sharks” and whales, the numbers are staggering.
Both shrimp and crabs, the smallest retail investors with 10 BTC or less in their wallets, are not only buying, they are buying more intensely than at any other time since the first time the BTC/USD pair hit $20,000 in 2017.
“Can’t and won’t stop,” Checkmate wrote in describing the buildup.
“Shrimp are buying BTC at the fastest pace since the 2017 all-time high. Same price, different trend direction. I do not underestimate the cunning and conviction of the small bitcoin investor.”
At the other end of the spectrum, heWhales are withdrawing their coins from exchanges to private wallets at a rate Checkmate calls “full HAM.” (and that could be translated from English as “intensely”).
Whale with 1k+ $BTC are going HAM.
Alongside the Shrimp and Crabs, this looks like the perfect mid-wit meme.
Shrimp = stackers
Middle wealth = scared and margin called
whales = stackers pic.twitter.com/zyakmicxGG— _Checkɱate ⚡ (@_Checkmatey_) June 29, 2022
Whales with over 1,000 BTC are going HAM. Along with Shrimp and Crabs, this seems like the perfect meme for the middle of the world.
Shrimp = stackers.
Of medium wealth = scared and with room for maneuver.
Whales = stackers.
The main exception is in the middle: sharks or high net worth institutional entities with between 10 and 1,000 BTC to your name.
While this constitutes a large swath of the network, hodlers have borne the brunt of macro changes, Checkmate claims, as they have liquidated their positions or seen their wealth erased in DeFi bets.
Nevertheless, even here the general trend is upward.
“Balances are rising, but nothing special. Considering the TradFi and crypto shitshow –> I suspect these guys are heavily affected by deleveraging, and margin calls,” wrote.
BTC outflows from exchanges hit a new peak
Earlier this week, Glassnode also showed that 30-day cumulative BTC outflows from exchanges had reached a new high.
For Ki Young Ju, CEO of the analysis company CryptoQuant, The signs that capital is waiting on the sidelines to unfold back into the crypto market are also clear.
Ki looked at the combined stablecoin market capitalization shrinking by just 11%, compared to bitcoin’s 70% from its all-time highs.
“Stablecoins deposited on exchanges are now worth half of bitcoin’s reserves,” added on June 30.
“We have $25 billion that can drive up crypto asset prices. The question is when, not how.”
Stablecoins sitting in exchanges are now worth half of #bitcoin reserve.
We have $25B loaded bullets which can make crypto asset prices go up. The question is when, not how. pic.twitter.com/SQ0ZvBnAMt
— Ki Young Ju (@ki_young_ju) June 30, 2022
Stablecoins held on exchanges are now worth half of the bitcoin reserve. We have $25 billion that can drive up the prices of crypto assets. The question is when, not how.
The situation is complicated by the fact that the stablecoin market capitalization ratio on exchanges has remained virtually constant for two years, while the market capitalization itself has skyrocketed in that period.
The supply ratio of bitcoin exchanges, meanwhile, has been much more volatile.
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