Thread by @AxelAdlerJr

1/8 🧵 Let's dive into the smallest players in the BTC market, the "shrimps" - wallets with a balance of less than 1 BTC. This cohort doesn't have as much influence as others, but due to their large volume and coordinated activity, they can exert buying and selling pressure #BTC

2/8 For all charts, we'll examine metrics smoothed by a 7-day moving average to identify trends more clearly. The "BTC Shrimp 🦐 Addresses with Balance ≤ 1" chart shows the difference between the number of addresses with a balance ≤ 1 BTC on the current and previous days.

3/8 This indicator reveals how many new addresses with a balance ≤ 1 BTC have appeared or disappeared in the Bitcoin network daily. Their number fluctuates significantly, ranging from 23-48k (7-day avg) The main pattern we see is active BTC buying after significant market drops.

4/8 I personally rejoice in these guys' bravery! The second chart, "BTC Shrimp 🦐 Total Balance ≤ 1," reflects the USD amount in the Shrimp cohort's balance. I marked two zones: the green 🟩 zone of increased activity and the gray ⬜️ zone of decreased activity. #crypto

5/8 We can clearly see the activity spikes after market crashes (LUNA/FTX) and how quickly the shrimps' wallet balances grow. The third chart, BTC Shrimp 🦐 Supply Net Position Change, represents the net position change (sum of balances) of Bitcoin holders with a balance ≤ 1 BTC

6/8 The net position change shows the difference between the shrimps' total balance on the current and previous days. It reveals how much their overall balance has increased or decreased over time. We can clearly see that shrimps actively buy BTC right after major declines.

7/8 🧐Conclusions: Shrimps are very active and can influence the market. They often become active right after significant market crashes. Despite their large volume, they act in a coordinated manner, indicating they constantly monitor the market, regardless of their small balance

8/8 So, keep an eye on the shrimps, as they can provide valuable insights into the market sentiment and behavior, especially during times of market stress. #cryptocurrency #shrimps #marketanalysis