The whole FTX fiasco has been over for three weeks and has shaken up the crypto market quite a bit. The price of bitcoin and many other cryptocurrencies has fallen to new lows and the fear is well established among many investors. Nevertheless late on chain data shows that small bitcoin (BTC) investors are filling their pockets and profiting massively from the price drops due to the bankruptcy of FTX.
Blockchain analytics company Glassnode has broken down all BTC addresses into 7 labels: ‘Shrimps’ are wallets with less than 1 BTC, ‘crabs’ are wallets with 1 to 10 BTC, ‘octopuses’ are wallets with 10 to 50 BTC, ‘fish ‘ are wallets with 50 to 100 BTC, ‘dolphin’ are wallets with 100 to 1,000 BTC, the well-known ‘whales’ are wallets with 1,000 to 5,000 BTC and finally the ‘humpbacks’ with more than 5,000 BTC.
Shrimps and crabs are buying BTC en masse
Glassnode announced in a tweet that the bitcoin shrimps managed to add 96,200 bitcoin to their wallets after the fall of FTX. This group of investors now holds a total of 1.21 million bitcoin, which is equivalent to about 6.3% of the total amount currently in circulation.
— glassnode (@glassnode) November 28, 2022
Glassnode also said that the crabs have shown similar buying behavior in recent weeks. This group of investors has managed to attract 191,600 bitcoin in the past 30 days.
For both shrimps and crabs, the recent aggressive buying behavior has led to a all time high in accumulation. In that respect, many investors seem to want to take advantage of the collapse of FTX and the accompanying low prices.
The group of investors with 1,000 to 5,000 bitcoin, or the whales, are just them holdings selling at the moment. In the past 30 days, this group has sent about 6,500 more bitcoin to crypto exchanges than they have taken from it. However, this turns out to be a relatively small amount compared to their total of 6.3 million bitcoin.