Bitcoin ‘shrimps’ invest in cryptocurrency at fastest rate on record as price languishes

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Global investors that hold less than one bitcoin, also known as “shrimps”, are buying more of the cryptocurrency as its price languishes below $20,000 (£16,780).

New data from Glassnode shows that ‘HODlers’, or crypto investors in for the long-term, are adding to their bitcoin wallets at the fastest rate on record.

It also shows that “whales”, or investors with more than 1,000 bitcoin, are also making the most of the low price, adding to their balance at the fastest rate since January last year.

It comes despite many bitcoin investors sitting on big losses.

The cryptocurrency has lost more than two-thirds of its value since hitting nearly $69,000 in November last year.

In June alone, it slumped by more than a third, recording its biggest monthly price drop since 2011.

However, it appears to have since stabilised, hovering between $19,000 and $21,000 during the past four weeks.

The cryptocurrency was down by about 1.5 per cent in the last 24 hours to around $19,600, according to data by Coinbase.

“The market is approaching a HODLer-led regime,” Glassnode said in a note.

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The blockchain market intelligence firm suggested that transaction demand seemed to be moving sideways, indicating a stagnation of new entrants and the probable retention of existing users.

More than five million adults in the UK have owned a risky crypto asset, according to recent research from HM Revenue & Customs and data firm Kantar.

They found that one in 10 people over the age of 18 said they bought a digital currency such as bitcoin in the past few years.

Cryptocurrencies have struggled for months. This has been caused by numerous factors, from rising inflation to increased regulation and crackdowns on crypto mining in countries like China.

Investors appear to be moving away from cryptocurrency and towards less risky investments in the face of global inflation.