Glassnode Data Shows That FTX Collapse Left Bitcoin Holders Unfazed.
Bitcoin holders did not panic in the wake of the FTX collapse as smaller holders accumulated.
Bitcoin shrimps (holders with less than 1 BTC) and Bitcoin crabs (holders with up to 10 BTC) have been accumulating despite the FTX collapse, with only mild selling from whales, per data from Glassnode in a Twitter thread today.
This cohort now now hold over 1.21M $BTC, equivalent to 6.3% of the circulating supply.
— glassnode (@glassnode) November 28, 2022
Instead of panicking, Bitcoin shrimps added 92.6k BTC to their bags in the wake of the FTX collapse. According to Glassnode, it represents an all-time high balance increase and brings their holdings to over 1.21 million BTC, over 6.3% of the circulating supply.
Bitcoin crabs also set what the analytics firm described as a “convincing all-time high” in accumulations. Per the data, they added 191.6k BTC to their holdings, surpassing a previous record of 126k BTC in July.
Glassnode notes that the primary class of holders selling are the whales (holding over 1k BTC). However, it highlights that they have sold only about 6.5k BTC, a very small percentage of their 6.3 million BTC holdings.
Meanwhile, Santiment Feed, in a tweet on Saturday, also confirms this trend. Notably, the analytics firm revealed that only 6.95% of BTC sits on exchanges, highlighting an accelerated shift toward self-custody.
All of these are indicators of less selling pressure in the market.
It bears mentioning that the FTX collapse saw Bitcoin form a new two-year low below the $16k price point, with looming fears of contagion risks. Recently, fears of a possible collapse of Digital Currency Group and its crypto lending arm Genesis Trading have left investors on edge. Notably, several investors are worried about the impact on the DCG-operated Grayscale Bitcoin Trust, which holds over 633.7k BTC.
Bitcoin analyst Ali Martinez on Saturday cautioned investors to brace for market volatility as he highlighted a Bollinger Bands squeeze on the 4-hour timeframe. “BTC needs to close outside of the $16,400 – $16,700 price pocket to signal the direction of its trend,” Martinez added.
#Bitcoin | The Bollinger Bands are squeezing on #BTC 4hr chart, signaling that a spike in volatility is underway.$BTC needs to close outside of the $16,400 – $16,700 price pocket to signal the direction of its trend. The RSI's 50 and 60 levels can also be used for confirmation. pic.twitter.com/2gzYR8qcHY
— Ali (@ali_charts) November 26, 2022
While on-chain data indicates reduced selling pressure and the Bollinger Bands indicate volatility, analysts like il Capo of Crypto and Profit Blue remain pessimistic. Both have asserted that a bearish continuation remains more likely in recent tweets.
Notably, veteran trader Peter Brandt recently indicated that the price of Bitcoin could drop as low as $10k in this bear cycle.
CoinMarketCap data shows that Bitcoin is currently exchanging hands for $16,200. It is down 2.26% in the last 24 hours.