According to the latest data from analytics firm Glassnode, speculative investors are driving the buying and selling activities of Bitcoin (BTC) whales in 2023. Contrary to popular belief, these opportunistic entities are the most active whales in the market.

The Rise of Short-Term Holder Whales

Recent data shows a notable shift among Bitcoin traders since the price of BTC returned to $30,000. Short-term holders (STHs), or investors who hold their coins for a maximum of 155 days, have become more prominent. Interestingly, the largest-volume investor group, known as whales, also consists of a significant number of short-term holders.

Glassnode explains, “Short-Term Holder Dominance across Exchange Inflows has exploded to 82%, which is now drastically above the long-term range over the last five years (typically 55% to 65%). From this, we can establish a case that much of the recent trading activity is driven by Whales active within the 2023 market (and thus classified as STHs).”

There has been a growing interest among speculators in trading short-timeframe movements of BTC/USD even before May. After the FTX meltdown in late 2022, traders have been increasingly eager to take advantage of both upward and downward volatility.

The results of these trading activities have been mixed, with realized profits and losses fluctuating in line with the price swings. Glassnode notes, “Each rally and correction since the FTX fallout has seen a 10k+ BTC uptick in STH profit or loss, respectively.”

Whales Exhibit an “Elevated Inflow Bias” to Exchanges

More recently, whales have increased their activity on exchanges, accounting for 41% of total inflows in July at one point. Glassnode comments, “Analysis of the Whale Netflow to Exchanges can be used as a proxy for their influence on the supply and demand balance.” For most of the last five years, whale inflows have oscillated between ±5k BTC/day. However, from June to July of this year, whale inflows have consistently remained in the range of 4.0k to 6.5k BTC/day.

It’s worth noting that whales are not the sole driving force behind BTC sales. Mining Pool Poolin made headlines with its transactions to Binance, and miners potentially hedging profits have also contributed to sell-side activity.

FAQs

Who are Bitcoin whales?

Bitcoin whales are individuals or entities that hold large amounts of Bitcoin.

What are short-term holders (STHs)?

Short-term holders (STHs) are investors who hold their Bitcoin for a maximum of 155 days.

What is the significance of whale exchange inflows?

Whale exchange inflows can provide valuable insights into the supply and demand balance of Bitcoin.

What other factors contribute to BTC sales apart from whales?

Aside from whales, mining pools and miners potentially hedging profits also contribute to sell-side activity of Bitcoin.

Is this article an investment advice?

No, this article does not contain investment advice or recommendations. Readers should conduct their own research before making any investment decisions.

Sources: Glassnode