This month, one of the industry’s titans saw one of the most spectacular crashes, which raised questions about the outlook of investors and the market as a whole. On-chain data, however, reveals that retail investors have kept accumulating bitcoin with a greater desire. According to Glassnode and other analytical tools, Bitcoin shrimps are objects capable of carrying up to one complete BTC.
Historically, demand for these wallets peaked during bull cycles when the asset’s price was rising quickly. BTC has certainly been in a bear cycle state for the past few months, despite the fact that there is still no clear community consensus on whether the asset has bottomed out yet. However, these entities started building again this month, right about when the FTX collapsed. They actually increased their balance by an all-time high of 96.2K BTC in the last several weeks.
In a recent report, the corporation claimed to own more than 1.21 million BTC or roughly 6.3% of the total amount in circulation. Similar circumstances apply to bitcoin crabs, up to 10 BTC. Over the past 30 days, their balance has aggressively increased by 191.6k BTC, surpassing the all-time accumulation peak reached in July 2022.
Glassnode issued a warning, however, pointing out that bitcoin whales have been reducing their holdings by selling 6.5K BTC to exchanges throughout the same time period. The analytics tool noted that this distribution is still quite minor in comparison to their 6.3 million BTC overall holdings.
Tom Lee described 2022 as a terrible year that started with price declines brought on by macroeconomic factors, took a further hit after the Terra crash, got worse as a result of multiple firms filing for bankruptcy afterward, and concluded with FTX. Everything began with a balance sheet leak that revealed Alameda and FTX had excessive exposure to the latter’s native coin. Binance was motivated to sell its FTT holdings as a result of this.
From that point on, everything started to fall apart quite quickly, with Alameda attempting to purchase Binance’s shares for less, individuals losing faith and attempting withdrawals, and SBF claiming that the assets were secure when they weren’t. A few days later, after Binance pulled out of a proposed acquisition transaction, FTX, Alameda, and other subsidiaries were forced to file for bankruptcy.
Since then, a number of reports have surfaced explaining what went wrong with SBF’s empire, but the majority demonstrate how poorly it was managed. While all of this was happening, the market valuation for cryptocurrencies lost $200 billion, and prices fell. This could drive away some investors, but it appears that regular investors and their BTC holdings are in a different situation.
