Shrimp wallets forecast to boom in 2025
Small-scale investors set to drive Bitcoin adoption as wallets under one BTC grow rapidly
As Bitcoin continues to surge, wallets holding less than one BTC may experience a boom in 2025.
While some investors, known as whales, are bulk-buying Bitcoin, others are accumulating smaller amounts. These "shrimp wallets" hold less than one Bitcoin and are a key indicator of retail investor activity.
Axel Adler, an analyst and contributor for market data firm CryptoQuant, noted, “Despite being labeled as ‘shrimps,’ these holders are showing strong confidence in Bitcoin's growth, continuing to accumulate coins even at current price levels. Given the trend, I expect the number of addresses to rise further.”
The average number of addresses holding less than 1 BTC currently stands at 323K (with BTC priced at $101K).
— Axel 💎🙌 Adler Jr (@AxelAdlerJr) December 14, 2024
This growth began when BTC was at $61K, at which point there were 265K such addresses. Since then, the number of addresses has increased by 21.9%.
Despite being labeled… pic.twitter.com/gK0AwOPWd1
Currently, addresses holding less than one BTC average 323,000, with Bitcoin priced at about $95,000. This represents a 21.9% increase from 265,000 addresses when Bitcoin was valued at $61,000. Adler predicts this number could rise to 351,000.
Shrimp wallets have become a key metric for Bitcoin retail interest, signaling robust confidence in the cryptocurrency. Even as Bitcoin's all-time high recently surpassed $100,000, retail investors have continued to actively accumulate the currency.
Retail vs. long-term trends
However, not all Bitcoin investors share the same enthusiasm. Long-term holders, defined as those holding assets for more than 155 days, have recently begun liquidating. Yahoo! Finance recently reported that long-term holders sold 827,783 BTC in the past 30 days, a significant sell-off that may indicate the market is peaking.
Analysts suggest this could lead to price declines due to stronger selling pressure. However, Bitfinex analysts believe the crash may not be as severe as the 10% drop seen in early December, citing easing sell-side pressure.
Diverging sentiments
The contrasting behaviors of shrimp wallet holders and long-term investors highlight a shift in market sentiment. Retail investors are expressing strong confidence in Bitcoin’s future, while seasoned holders seem to be cashing in. According to CoinMarketCap, this divergence could indicate market sentiment polarization, with both short-term volatility and long-term implications.
Despite the sell-offs, Bitcoin continues to gain traction among major players. BlackRock, the world's largest asset manager, recommends allocating up to 2% of portfolios to Bitcoin, equating its risks to top tech stocks like Apple and Alphabet.
Institutional adoption is also growing, with MicroStrategy doubling its Bitcoin holdings this year to 439,000 BTC. The company’s shares have surged by 3,200% since adopting Bitcoin as a treasury asset.
Additionally, businesses across various industries are accepting Bitcoin payments. For example, Virgin Voyages now accepts Bitcoin for its $120,000 annual cruise pass.
