The recent increase in demand for Bitcoin from small investors has led to their purchases surpassing the monthly supply, affecting the cryptocurrency market.
Demand from Small Investors
According to Bitfinex analysts, the combined holdings of new Bitcoin buyers are growing at a rate of about 19,300 BTC per month, comfortably outpacing the post-halving issuance of approximately 13,400 BTC. Smaller investor groups, known in the crypto community as “Shrimp” (less than 1 BTC), “Crab” (1–10 BTC), and “Fish” (10–100 BTC), are steadily accumulating Bitcoin, unfazed by price swings. "Demand from this segment alone is more than enough to absorb all new supply," the Bitfinex report stated, emphasizing that these buyers are "relentlessly accumulating with limited intervals."
Bitcoin Sets New Highs
This grassroots accumulation comes as Bitcoin continues to break records. On Monday, the cryptocurrency reached a new all-time high of $122,884 before pulling back to around $116,700 at the time of writing. Crypto trading firm QCP Capital commented that BTC’s relentless rally "shows no signs of fatigue," as retail and institutional participation remains strong. The Crypto Fear & Greed Index, which tracks market sentiment, posted a "Greed" score of 74 on Monday, marking its fifth consecutive day in the "Greed" zone.
Warnings of Potential Volatility Ahead
While the persistent demand and new highs energize the market, analysts warn investors to remain cautious. Redstone co-founder Marcin Kazmierczak noted that although some analysts are predicting near-term Bitcoin targets as high as $140,000, "history teaches us that parabolic moves often invite sharp corrections." Kazmierczak highlighted recent large-scale liquidations as a reminder that volatility is a constant companion for Bitcoin traders, advising investors to approach price milestones with careful position sizing rather than euphoria. Santiment analyst Brian Quinlivan echoed these sentiments, pointing out that spikes in trader optimism have previously been followed by sharp price corrections, as seen during BTC drops on June 11 and July 7.
The demand from small investors exerts significant pressure on Bitcoin's demand, leading to record prices. However, investors should remain cautious and consider potential volatility risks.
