'Can't stop it, can't stop it': Bitcoin holders buy the dip at $20,000

The idea that panic selling is driving bitcoin’s price lower seems less plausible based on the latest data.

Everyone is expecting another capitulation event in Bitcoin, but data shows that the massive buy-in has already begun.

In a June 29 Twitter thread, Checkmate, lead on-chain analyst at data firm Glassnode, drew attention to who is actually hoarding in Bitcoin.

Whether they are shrimp or whales, Bitcoin holders are hoarding

The Bitcoin sell-off has been making headlines for weeks now and has even begun to include long-term holders (LTH) — those who have held Bitcoin for 155 days or more.

Speculators are not to blame for the current Bitcoin price weakness, but contrary to popular belief, many market participants are actually increasing their Bitcoin allocations.

By analyzing Glassnode data, Checkmate found that both the smallest and largest investors were in buying mode around $20,000.

Breaking down holders into four tiers: “Shrimp,” “Crabs” (also known as classic holders), “Sharks,” and Whales, the numbers make for surprising reading.

The smallest retail investors, those with 10 or fewer bitcoins in their wallets, are not only hoarding, but doing so more aggressively than at any time since BTC/USD first hit $20,000 in 2017.

“It can’t be stopped, it can’t be stopped,” Checkmate said of the accumulation.

Xiami is increasing its Bitcoin balance at the highest rate since the all-time high in 2017. Same price, different trend direction. I will not underestimate the wisdom and conviction of the Bitcoin little guys.

On the other hand, whale users are also moving Bitcoin from exchanges to private wallets at an alarming rate.

The main exceptions are in the middle: sharks or institutions, high net worth entities holding between 10 and 1,000 bitcoins.

While this represents a large portion of the network, holders bear the brunt of the macro changes, either getting liquidated or seeing their wealth wiped out in DeFi staking, according to Checkmate.

However, even here the general trend is upward.

“Balances are increasing, but nothing out of the ordinary. Given the poor performance of TradFi and crypto, I suspect these guys are being heavily impacted by deleveraging and margin calls,” he wrote.

Exchange stablecoin reserves reach $25 billion

Earlier this week, data from Glassnode similarly showed that the 30-day cumulative Bitcoin outflow from exchanges reached a new peak.

Ki Young Ju, CEO of another analytics firm, CryptoQuant, believes there are signs that capital is sitting on the sidelines, waiting to be redeployed into the cryptocurrency space.

Ki noted that the total stablecoin market capitalization has only fallen by 11%, while Bitcoin’s total market capitalization has fallen by 70% from its all-time high.

“The value of stablecoins sitting on exchanges right now is equivalent to half of the Bitcoin reserves,” he added on June 30.

We have $25 billion in stablecoins that can make crypto prices go up. The question is when, not how.

The situation is further complicated by the fact that the ratio of stablecoin market capitalization to exchanges has remained almost unchanged for two years, while the market capitalization of stablecoins themselves has expanded during this period.

Meanwhile, the ratio of Bitcoin supply held on exchanges is more volatile.

Bitcoin supply ratio on exchanges vs. BTC/USD chart. Source: CryptoQuan