During the last two months of June and July, the Bitcoin whale exchange inflows have hit 4,000 to 6,500 BTC per day.
RAs per the latest on-chain data, Bitcoin whale buying and selling this year in 2023 has been mostly from speculative investors. In its recent weekly newsletter, “The Week On-Chain”, crypto analytics firm Glassnode reveals that opportunistic entities are the most active whales.
After Bitcoin’s price reached $30,000 again, there has been a change in the behavior of Bitcoin traders. According to Glassnode, short-term holders (STHs) – those who hold coins for a maximum of 155 days – have become more prevalent. Interestingly, even the largest-volume investor group, the whales, consists of a significant number of short-term holders. In its report, Glassnode mentions:
“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).”
Even before May, there was a noticeable interest in trading short-timeframe moves on BTC/USD. Since the FTX meltdown in late 2022, speculators have become more enthusiastic about taking advantage of both upward and downward volatility.
The outcomes have been varied: Profits and losses have regularly surged in line with the volatile price movements. Glassnode further explains:
“If we look at the degree of Profit/Loss realized by Short-Term Holder volume flowing into exchanges, it becomes evident that these newer investors are trading local market conditions. Each rally and correction since the FTX fallout has seen a 10k+ BTC uptick in STH profit or loss, respectively.”
Bitcoin Whale Activity Shoots Up in July
During this month of July, when the Bitcoin price entered strong consolidation, the whale activity has also ramped up accounting for 41% of the total inflows at the exchanges. The Whale Netflow to Exchanges analysis can serve as an indicator of their impact on the supply and demand balance.
Over the past five years, Whale-to-exchange netflows have typically fluctuated between ±5,000 BTC per day. However, during June and July of this year, there has been a consistent trend of increased inflows, ranging from 4,000 to 6,500 BTC per day, reports Glassnode.
Along with the Bitcoin whales, the Bitcoin long-term holders supply has reached a new all-time high of over 14.5 million BTC. As per Glassnode, this is equal to 75% of the total circulating supply.
The #Bitcoin Long-Term Holder Supply has reached a new ATH of 14.52M BTC, equivalent to 75% of the circulating supply.
This suggests HODLing is the preferred market dynamic amongst mature investors. pic.twitter.com/rfPmHM9hh2
— glassnode (@glassnode) July 24, 2023
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