Share this article
Retail Accumulation and Exchange Outflows Drive Market Optimism for Bitcoin
Smaller bitcoin investors and reduced liquidity signal potential for continued price growth
Updated Sep 26, 2024, 5:21 p.m. Published Sep 25, 2024, 1:17 p.m.
- Retail bitcoin investors, particularly "crabs" and "shrimps," have accumulated 35,000 BTC in the past 30 days, highlighting increased confidence and participation from smaller holders.
- With 40,000 BTC withdrawn from exchanges in the past 30 days, reduced liquidity suggests a potential supply squeeze, creating a bullish environment for future bitcoin price increases.
In the past 30 days, the Bitcoin ecosystem has seen a significant rally in accumulation, with approximately 88,000 BTC being amassed on a net basis. This strong period of accumulation, which has persisted through much of September, is notable for being about seven times the monthly bitcoin issuance of around 13,500 BTC. Such intense accumulation has not been seen since Q4 2023, a period that saw a rapid increase in bitcoin's price.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
A deeper analysis of this net accumulation reveals that retail investors, particularly smaller holders, are playing a significant role. Investors with less than 10 BTC, often categorized as “crabs” (owning 1 to 10 BTC) and “shrimps” (owning less than 1 BTC), have collectively accumulated 35,000 BTC in the past 30 days. This trend of retail accumulation has been ongoing since May, underscoring the growing confidence and participation of smaller investors in the market.
Another factor providing a tailwind for bitcoin's price is the substantial outflow of bitcoin from exchanges. Around 40,000 BTC have left exchanges in the past 30 days, signaling reduced liquidity. When bitcoin is withdrawn from exchanges, it can indicate that holders intend to keep it off the market, reducing selling pressure and creating a bullish environment for future price increases as 74% of the circulating supply is considered illiquid.
This combination of retail accumulation and exchange outflows suggests that bitcoin's current momentum could continue to strengthen in the coming months.
Disclosure: An early draft of this article was edited by an AI tool, then further edited by CoinDesk staff prior to publication.
UPDATE (Sept. 26, 2024, 17:01 UTC): Belatedly adds disclosure.
More For You
Solana CME Futures Fell Short of BTC and ETH Debuts, but There's a Catch
When adjusted for asset market capitalization SOL's relative futures volume looks better, K33 Research noted.
알아야 할 것:
- Solana's SOL futures began trading on the Chicago Mercantile Exchange (CME) on Monday, with a notional daily volume of $12.3 million and $7.8 million in open interest, significantly lower than the debuts of bitcoin (BTC) and ether (ETH) futures.
- Despite the seemingly lackluster debut, when adjusted to market value, SOL's first-day figures are more in line with BTC's and ETH's, according to K33 Research.
- Despite the bearish market conditions, the launch of CME SOL futures offers new ways for institutions to manage their exposure to the token, said Joshua Lim of FalconX.
Top Stories
