Shrimp Wallets Show Growing Retail Activity as MicroStrategy Joins Nasdaq 100

The number of Bitcoin wallets holding less than 1 BTC is set to grow by 9% in the coming weeks. Small investors are buying more BTC, even though its price has crossed $100,000.

Small Bitcoin Wallets Set to Grow by 9% as Retail Investors Keep Buying BTC at Record Highs

The number of Bitcoin wallets with less than 1 BTC is set to grow by 9% in the coming weeks. This shows that small investors are still buying BTC, even though its price has crossed $100,000.

CryptoQuant analyst Axel Adler says that despite being called shrimps, these holders show strong trust in BTC. They keep buying, even at these price levels.

Adler shared his findings in a post on X on December 14. He noted that wallets holding less than 1 BTC are a sign of retail trust in the cryptocurrency. At present, there are 323,000 shrimp wallets. Adler predicts this number will rise to hit 351,000 soon.

This growth in shrimp wallets began when BTC was trading at $61,000. At that time, there were 265,000 wallets. Since then, the number has increased by 21.9%, showing strong retail interest as BTC's price climbed. Right now, BTC trades at $102,988.

Small Buyers Accumulate While Big Holders Sell

While small buyers continue to add to their holdings, large long-term holders, on the other hand, are selling. These wallets have held Bitcoin for at least 150 days.

Reports from December 9 revealed that long-term holders sold 827,783 BTC in the past month. As a result, some experts suggest this might signal a market top, especially if demand begins to slow.

However, analysts at Bitfinex expect smaller drops moving forward. In their December 9 report, they said, “With less profit-taking and lower sell pressure, future drops will be smaller than the one seen last week.”

Vancouver Plans to Embrace Bitcoin

The city of Vancouver is taking steps to become more Bitcoin-friendly. This follows a motion proposed by Mayor Ken Sim, which was approved by the council.

The plan includes exploring the option to accept taxes and fees in BTC. They will also be looking at converting part of Vancouver’s reserves into BTC.

This move reflects a growing interest in BTC from local governments. In recent months, several cities have announced plans to accept Bitcoin for taxes or other payments.

MicroStrategy Buys More Bitcoin

Companies are also showing their trust in BTC. On Monday, MicroStrategy announced a new purchase of 21,550 BTC for $2.1 billion. With this buy, MicroStrategy now owns 423,650 BTC, valued at around $42 billion. This makes it the largest public BTC holder.

As MicroStrategy joins the Nasdaq 100, many believe this could be a very good sign.

MicroStrategy joins the Nasdaq 100 🙌

This fuels the MSTR flywheel:

•Index inclusion → more inflows

•More inflows → higher stock price

•Higher stock price → issuing more shares to buy Bitcoin

•Buying Bitcoin → Bitcoin price rises

•Rising Bitcoin → MSTR’s market cap… pic.twitter.com/AxcRRGBFZs

— Bitcoin News (@BitcoinNewsCom) December 14, 2024

At the same time, the National Center for Public Policy Research urged Amazon to adopt BTC. The group recommends adding BTC to Amazon's corporate treasury.