Humpback Whales and Shrimp Cohort: On-Chain Analysts Speculate on Bitcoin Accumulation
A recent development has caught the attention of on-chain analysts and Bitcoin enthusiasts alike. On-chain expert Axel Adler Jr., citing data from CryptoQuant, has revealed that wallets belonging to the “Humpback” cohort have reached a new all-time high (ATH).
This increase has led to speculation about the involvement of institutional giants such as BlackRock or Fidelity. Interestingly, it is not just humpback whales, but also shrimps, that are demonstrating historically high conviction.
The Phenomenon of Bitcoin Humpback Wallets
The term “Humpback” refers to a specific cohort of wallets within the cryptocurrency ecosystem that hold an impressive amount of Bitcoin, surpassing the 5,000 BTC mark. The recent surge in these wallets, reaching a new record high, indicates significant accumulation and activity in the crypto market.
According to Axel Adler Jr., “the number of wallets in the ‘Humpback’ cohort with a balance of over 5,000 BTC has reached a new all-time high.” Is it BlackRock, Fidelity, or another giant? The mystery surrounding the identity of these key players has sparked curiosity and speculation about their motives and impact on the market.
On-chain data alone cannot determine which entity initiated the accumulation of BTC. However, there is a noticeable correlation with ETF filings. Regardless of the actual entity, whale accumulation can be interpreted as a positive sign for the price. In this regard, expert Will Clemente recently stated, “even if BlackRock/Fidelity resubmits and the ETFs are still rejected by Gary, the cat is out of the bag – institutions want your Bitcoin and want to get a piece of this market.”
It is worth noting that both whale and shark addresses of Bitcoin (different cohorts combined, wallets holding 10 to 10,000 BTC) have continued to accumulate, with a significant portion of BTC purchases made in the last two weeks of June when news about ETFs being launched was announced. On-chain data provider Santiment tweeted on July 1st that these cohorts alone accumulated 154,500 BTC in the last week of June.
Shrimps Show Crazy Conviction
While the activity of humpback wallets is remarkable, another fascinating cohort called “shrimps” has also come into focus. Glassnode’s lead analyst, Checkmate, highlighted today the enthusiasm shown by the shrimp cohort in stacking sats (Satoshi, the smallest unit of Bitcoin) at an astonishing rate.
He explains, “Bitcoin shrimps (< 1 BTC) are stacking sats at a rate of 33.8,000 BTC per month.” The issuance is about 27,000 BTC/month. For every 1 new coin, shrimps take 1.25 off the market. Crazy conviction on display.
The shrimp cohort, composed of smaller Bitcoin holders, demonstrates incredible conviction and continued buying behavior despite market fluctuations. As Checkmate emphasizes, “the last time the little guy stacked this hard was the 2017 ATH when he was buying the top. Five years later, they are stacking harder, faster, and more sustainably despite all the nonsense. Bullish.”
The simultaneous rise of both the humpback and shrimp cohorts suggests a fascinating dichotomy within the ecosystem. On the one hand, humpback wallets with their massive holdings indicate the potential involvement of institutional giants like BlackRock or Fidelity. Their accumulation of Bitcoin could serve as a catalyst for increased acceptance and market confidence.
On the other hand, the resilience and conviction of the shrimp cohort highlight the broader appeal and democratization of BTC. Despite past market downturns, the shrimp class remains unfazed, stacking sats at an unprecedented pace and showing unwavering faith in the long-term potential of Bitcoin.
At the time of writing, the BTC price continued to trade below the $31,000 mark, hovering around $30,728.[BTC-USD chart image]
Bitcoin price consolidates below yearly high, 2-hour chart | Source: BTCUSD on TradingView.com. Featured image by Thomas Kelley on Unsplash, chart from TradingView.com.