Bitcoin’s price has surged by $20,000 over the past week, with blockchain data revealing insights into the buyer profiles driving this rally. While large holders, known as whales, have been selling into recent gains, smaller investors, or “shrimps,” are steadily increasing their holdings, helping fuel the price ascent.

Bitcoin (BTC), the largest cryptocurrency by market cap, briefly approached the $90,000 mark early Tuesday before settling around $87,400. This still represents a 27% gain over the past seven days, according to CoinDesk data.

Zooming out, it’s clear much of the buying activity has been concentrated on Coinbase, a Nasdaq-listed exchange widely seen as a bellwether for U.S.-based institutional interest. Yet a closer look reveals that retail investors, particularly smaller addresses holding less than one BTC, are the primary drivers of this rally.

Retail Investors Stepping Up as “Smart Money”

According to data from Glassnode, Bitcoin holders are divided into different cohorts, from “shrimps” (addresses with less than one BTC) up to “humpback whales” (those holding over 10,000 BTC). A cohort’s behavior is represented by values, where values close to one suggest accumulation and values closer to zero indicate distribution.

For the last two months, every group except humpback whales has been steadily accumulating Bitcoin. This has paralleled Bitcoin’s rise from $55,000 in September to nearly $90,000 in November.

This accumulation trend suggests a shift in market dynamics, as retail buyers may now be demonstrating greater resilience and strategic timing than whales, who have generally been selling during the rally. CoinDesk’s analysis highlights how retail investors appear to be emerging as the new “smart money” in the Bitcoin market.

Demand Outpacing Supply Growth for Three Months

When looking at aggregate data across all groups—including miners, exchanges, and retail investors—the past month shows a total accumulation of 26,000 BTC. This trend has been consistent since September, indicating that demand has persistently outpaced supply growth and issuance.

Long-Term vs. Short-Term Holders’ Strategies

Glassnode defines long-term holders (LTHs) as those who have held their Bitcoin for over 155 days. Historically, LTHs tend to sell when prices are high, such as during bull markets in 2017 and 2021, and accumulate when prices are low.

However, current data shows that LTHs are holding onto their Bitcoin more firmly than in previous rallies, suggesting confidence in further upside. LTHs now control about 78% of the circulating supply, roughly 15 million BTC. Over the past month, they’ve reduced their holdings by only about 3%, a stark contrast to the 20% reductions seen in previous bull markets.

Conversely, short-term holders (STHs)—those who have held Bitcoin for less than 155 days—typically buy into market spikes, like the 10% price jump seen on Monday. STHs’ holdings are near historic lows, despite a minor increase. In previous bull markets, they held as much as 35% to 50% of the total supply.

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