The Resilient Rise of Retail Bitcoin Investors Amid a Bear Market

Bear Market? More Like Bear Who?

Despite the ominous clouds of fear, uncertainty, and doubt (FUD) swirling around the cryptocurrency realm, smaller retail investors are playing the financial equivalent of ‘who can hold their breath the longest’ with Bitcoin. Even after the infamous FTX collapse, retail investors—those not weighed down by heavy whale-sized portfolios—seem to be doubling down on their Bitcoin bets.

Meet the Shrimps and Crabs of the Crypto Ocean

According to recent insights from blockchain intelligence, Glassnode, the behavior of retail Bitcoin investors can be classified into two quirky categories:

• Shrimps: These are the brave souls holding less than 1 Bitcoin, which was worth about $16,500 when this article was penned.
• Crabs: This crustacean squad holds between 1 and 10 Bitcoins, roughly equating to $165,000.

In the wake of the FTX debacle, shrimps added a staggering 96,200 BTC (around $1.6 billion) to their collections, marking a jaw-dropping all-time high in balance increase. Shrimps now hold a collective 1.21 million BTC, about $20 billion, which is equivalent to a cozy 6.3% slice of the total circulating supply of Bitcoin.

Crabs Joining the Party

Meanwhile, those moderate crab investors aren’t just sitting idle either. Over the past month, they have bought approximately 191,600 BTC (around $3.1 billion), smashing previous accumulation records. Just imagine a bunch of crabs at a buffet stuffing their claws with Bitcoin like it’s free sushi. Their previous high of 126,000 BTC (or $2 billion) in July was just a warm-up for this feast!

Whale Watching… or Whale Selling?

While the shrimps and crabs feast on the Bitcoin buffet, Bitcoin whales—those heavyweight investors—have been taking some of their stock to the exchanges, unloading about 6,500 BTC (worth $107 million) in the last month. Fear not, though, as this drop only represents a tiny fraction of their vast reserves, which still hover around 6.3 million BTC (roughly $104 billion). It’s like a walrus deciding to sell a few clams while still keeping the whole ocean in its belly.

Mixed Signals in the Bitcoin Ecosystem

In the aftermath of FTX’s fall, Bitcoin saw its value dive by around $6,000, plunging from approximately $21,000 to below $16,000. However, it has shown slight signs of recovery, recently trading at around $16,500, a modest increase of 1.7% over the past 24 hours. Notable figures, like the government of El Salvador and Twitter’s own Elon Musk, remain optimistic about Bitcoin’s long-term prospects. Musk did mention, though, that we might be in for a ‘long crypto winter’—so pack your bags and stay cozy!