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Retailers are stockpiling bitcoins at an unprecedented rate

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Bitcoin “shrimp” are accumulating at the fastest pace in history, according to data from Glassnode.

Bitcoin accumulation

According to the lead on-chain analyst at Glassnode, the on-chain data provider, “shrimps,” entities that own less than Bitcoin (BTC), are adding 28,000 BTC per month, the fastest in the network’s history.

Development amid stalled BTC prices. After the worrying plunge on April 19th, last week’s recovery has been stellar, and a net positive for traders and equity holders.

Despite the general confidence in price expansions in the coming sessions, BTC failed to cross $30K and $31K respectively.

On April 26, prices rose to retest $30,000 but failed to breach the April 2023 highs. This line represents the immediate liquidation line that capped the bullish momentum.

As it marks recent highs in the first half of 2023, buyers must break this level for the trend to continue. Depending on trader participation, BTC could float to more than $32,000 in the days leading up to the highly anticipated halving in 2024.

Coin accumulation by “shrimp,” mostly retail holders, reading through their holdings and depth of headline spread, indicates their confidence in BTC’s prospects.

As of April 28, there were more than 44 million unique addresses worth less than 1 BTC. Meanwhile, there are 888,000 addresses held between 1 and 10 BTC.

While there may be a real possibility that a single owner may control several addresses, Glassnode classifies any transaction that does not collect their UTXO as a single “entity” for easy directional identification.

These “entities” can then be categorized depending on the number of coins being held at any given time, leading to a better perception of BTC ownership.

Onchain transactions are up as BTC expands by 50% since mid-March

A Glassnode analyst makes a notable observation that the shrimp has accumulated more coins during the price contraction. This is a sign of confidence, as currency holders, typically, tend to liquidate whenever there are fears of future price contractions.

The accumulation also coincides with the number of transactions on the chain. Glassnode data shows that as of April 29, 426,337.14 transactions, based on a seven-day moving average, have been recorded on the Bitcoin network, which is a record.

Bitcoin prices are up nearly 50% since mid-March as a tailwind was provided by the more hawkish Federal Reserve (Fed). The central bank raised interest rates despite the banking crisis in the United States, which sent bitcoin prices higher.

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