Bitfinex reports that retail demand for Bitcoin is outpacing supply, which is seen as a boon for the cryptocurrency's price . According to Bitfinex analysts, new buyers entering the Bitcoin market are seen as "price-agnostic" and are scooping up cryptocurrency faster than miners can supply .
In a markets report on Monday, Bitfinex analysts said that the combined balance of these cohorts is expanding at a rate of approximately 19.3K BTC per month . Smaller Bitcoin investors, the Shrimp (<1 BTC), Crab (1–10 BTC), and Fish (10–100 BTC) holder groups, are growing their Bitcoin portfolio much faster than the current monthly issuance rate, which has been around 13,400 BTC since the April 2024 halving . "Demand from this segment alone is more than enough to absorb all new supply," they said, adding that they are consistently buying no matter the price .
The aggressive accumulation comes as Bitcoin continues to set new all-time highs . On Monday, Bitcoin reached a new all-time high of $122,884 before retracing to $119,860 . According to CoinMarketCap data, Bitcoin is up 13.87% over the past 30 days .
Despite the bullish momentum, some warn of potential volatility ahead . Redstone co-founder Marcin Kazmierczak told Cointelegraph that while many crypto analysts are now calling for short-term Bitcoin targets as high as $140,000, "history teaches us that parabolic moves often invite sharp corrections" . Rising sentiment "warrants careful position sizing" . Kazmierczak pointed to the large number of leveraged positions wiped out in the past 24 hours as a reminder that "volatility remains Bitcoin's constant companion" . Nearly $430 million in Bitcoin shorts were liquidated as the price surged past $121,000, according to reports .
Bitfinex analysts stated that the Bitcoin supply held by long-term investors on the exchange has dropped to the lowest level in 18 months .