FTX Crash Leads to Aggressive Bitcoin Accumulations for Investors, Research Shows

FTX Crash Leads to Aggressive Bitcoin Accumulations for Investors, Research Shows

The FTX exchange crash is leading to aggressive Bitcoin accumulations for investors, a study by CryptoSlate has shown. All categories of Bitcoin investors accumulated aggressively during the week, although the whales began accumulating weeks before the FTX news broke.

The recent crash of the FTX exchange has led to a decline in the value of all cryptocurrencies. Bitcoin dropped to $15,682 per coin over the past seven days. However, the decline in the value of Bitcoin did not deter investors, as data showed that all major categories of Bitcoin investors — whales, fish-to-shark, crabs, and shrimp — were accumulating it aggressively over the course of the week, according to data analysis by CryptoSlate.

Shrimps refer to retail investors with less than 1 BTC. Since the start of the bear market, this cohort has been actively adding more Bitcoin as they increasingly found the asset affordable. A study by CryptoSlate found that Shrimps increased their balance by more than 60,000 BTC in July. Shrimp are highly sensitive to price changes and have begun aggressively hoarding digital assets as BTC is once again in a price range they find attractive. The net supply position of shrimp has been on an upward trend since the beginning of this year, increasing at a regular pace. But, Glassnode data showed that their holdings recorded a sharp uptick following FTX’s crash as the supply held by shrimps crossed 1 million.

Crabs are retail-sized investors with larger capital accumulations or cohorts that have been accumulating BTC over the years. The size of their assets is usually between 1 and 10 BTC and they are well-informed about the news and movements in the crypto market. On-chain data showed that Crabs also aggressively acquired BTC following the FTX crash. BTC supply held by Crabs reached 2.8 million, and their supply net position significantly spiked in the second week of November; their position had been mostly stable since September.

Fish to Shark
The next category of investors who have massively invested in Bitcoin since the FTX crash are those who are referred to as the Fish-to-Shark cohort. Usually, these are holders from 10 to 1000 BTC. According to on-chain data, the supply of BTC belonging to this class declined significantly between May and June. However, later, they actively accumulated the flagship digital asset, reaching a new all-time high for the year — more than 6.9 million. Their net supply position, which had been relatively stable since August, rose sharply in the second week of November.

Bitcoin whales hold over 1000 BTC. This group mostly sold BTC during the year and many of them had to de-risk in order to get as much liquidity as possible in the face of negative macro conditions. However, like every other class of BTC investors, they seem to have broken their yearly trend and started acquiring Bitcoin at the end of October. Thus, they did not show a response to the FTX collapse compared to other cohorts whose supply activity spiked after the event.

© 2022, Eva Fox | Tesmanian. All rights reserved.


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Article edited by @SmokeyShorts; follow him on Twitter

About the Author

Eva Fox

Eva Fox

Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.

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