Bitcoin Buyers Absorb All New Supply as Price-Agnostic Demand Surges

Bitcoin rally is being driven by a relentless wave of price-agnostic buyers, with demand from small investors now exceeding the monthly supply miners bring to market. According to Bitfinex analysts, the combined holdings of new buyers are expanding at a rate of around 19,300 BTC per month, comfortably outpacing the post-halving issuance of approximately 13,400 BTC.

Analysts note that 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

The surge in 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, data from CoinMarketCap shows.

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.

Despite the ongoing bullish momentum, the rapid price ascent has liquidated a significant number of short positions. CoinGlass reported that nearly $430 million in Bitcoin shorts were wiped out as the price surged past $121,000.

Warnings of Potential Volatility Ahead

While the persistent demand and new highs are energizing 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.