Retail Investors Missing in Action as Shrimp BTC Addresses Hit 3-Year Low

A recent analysis highlights a concerning trend: the number of Bitcoin addresses holding less than 1 BTC—commonly referred to as "shrimps"—has plummeted to its lowest level in years.

A recent analysis by Glassnode has revealed a concerning trend: the number of Bitcoin addresses holding less than 1 BTC—commonly referred to as “shrimps”—has plummeted to its lowest level in three years.

As of today, the number of shrimp addresses has dropped to just 260,000, a sharp decline from the 590,000 recorded during the 2021 ATH.

Even at the April 2024 ATH, the number had already decreased to 490,000, indicating a consistent downward trend in small-holder participation.

This decline also coincides with a broader weakness in 30-day average address activity, which remains significantly below the yearly average.

The decreased address activity further suggests that the average retail investor is staying on the sidelines, even as larger players appear to be more engaged in the market.

This data aligns with the broader observation of relatively weak network activity on the Bitcoin blockchain, despite bullish price action. The lack of retail enthusiasm suggests that the current market surge is likely being driven by larger players and institutions rather than a widespread wave of individual investors.

It’s important to note that some shrimp addresses may have transitioned to higher holding categories over time. However, this shift in cohorts accounts for only a minority of the overall drop in shrimp addresses, and doesn’t fully explain the steep decline.

In summary, while Bitcoin continues to make headlines with its price performance, the underlying data from Glassnode tells a more nuanced story—one where retail investors have yet to return in full force.