A recent development has caught the attention of on-chain analysts and Bitcoin enthusiasts alike. On-chain expert Axel Adler Jr, citing data from CryptoQuant, has revealed that wallets belonging to the ‘Humpback’ cohort have hit a new all-time high (ATH).
This rise has led to speculation about the involvement of institutional giants such as BlackRock or Fidelity. It is striking that not only humpback whales, but also shrimps are currently displaying a historically high conviction.
The phenomenon of Bitcoin Humpback wallets
The term “Humpback” refers to a specific cohort of wallets within the cryptocurrency ecosystem that hold an impressive amount of Bitcoin, surpassing the 5,000 BTC mark. The recent increase in these wallets reaching an ATH indicates a significant level of accumulation and activity within the crypto market.
According to to Axel Adler Jr.: “The number of wallets in the ‘Humpback’ cohort with balances above 5,000 BTC has shown a new ATH. Is this BlackRock, Fidelity or other giants?” The mystery surrounding the identities of these major players has sparked curiosity and speculation about their motivations and impact on the market.
Based on the on-chain data alone, it is not possible to determine which entity started accumulating BTC. What is striking, however, is the temporal connection with the ETF applications. Regardless of the actual entity, an accumulation of whales can be interpreted as a positive sign for the price. In this vein, expert Will Clemente recently mention:
Even if Blackrock/Fidelity is resubmitted and the ETFs are still rejected by Gary, the cat is out of the bag – institutions want your Bitcoin and are trying to get their share of this market.
It is worth noting that Bitcoin’s whale and shark addresses (different cohorts combined, wallets with 10 to 10,000 BTC) continue to accumulate, with a large portion of BTC purchases occurring in the last 2 weeks of June when news of ETF launches came out. On-chain data provider Santiment tweeted on July 1 that the aforementioned cohorts collected 154,500 BTC in the last week of June alone.
‘Shrimp’ show crazy conviction
While the activity of Humpback wallets is astounding, another intriguing cohort known as the “Shrimps” has also entered the picture. Glassnode Lead Analyst, Checkmate marked today the enthusiasm shown by the Shrimp cohort in stacking sats (satoshi, the smallest unit of Bitcoin) at an astonishing rate.
He says: “Bitcoin Shrimp (< 1 $BTC) accumulates sats at a rate of 33.8k $BTC per month. Issuance is ~27.0k $BTC/month. For every 1 new coin Shrimp take 1.25 from the market. Crazy belief on display.
The Shrimp cohort, made up of smaller Bitcoin holders, is showing incredible conviction and sustained buying behavior despite market swings. As Checkmate notes, “The last time the little guy stacked this hard was ATH 2017, when he bought the top. Five years later, they stack harder, faster and more sustainably, despite all the nonsense. bullish.”
The simultaneous emergence of both the humpback and shrimp cohorts represents an exciting dichotomy within the ecosystem. On the one hand, the Humpback portfolios, with their huge holdings, point to the possible involvement of institutional giants such as BlackRock or Fidelity. Their accumulation of Bitcoin could serve as a catalyst for increased adoption and market confidence.
On the other hand, the resilience and conviction of the Shrimp cohort highlight BTC’s broader appeal and democratization. Despite past market declines, the Shrimp class remains undaunted, stacking sats at an unprecedented rate and demonstrating an unwavering belief in Bitcoin’s long-term potential.
At the time of writing, BTC price continued to hover below the USD 31,000 mark and was trading at USD 30,728.
Featured image from Thomas Kelley / Unsplash, chart from TradingView.com