New data from analytics firm Glassnode reveals that speculative investors are the main players in Bitcoin (BTC) whale buying and selling in 2023. Contrary to popular belief, opportunistic entities are the most active whales in the market.
According to Glassnode’s weekly newsletter, “The Week On-Chain,” there has been a shift among Bitcoin traders since the BTC price action returned to $30,000. Short-term holders (STHs), investors who hold coins for a maximum of 155 days, have become more common. Interestingly, the largest-volume investor cohort, the whales, also consists of a significant number of STHs.
Glassnode states that short-term holder dominance across exchange inflows has exploded to 82%, which is significantly higher than the long-term range observed over the last five years. This suggests that much of the recent trading activity is driven by whales classified as STHs within the 2023 market. The data illustrated in a screenshot shows Bitcoin short-term holders’ dominance of exchange inflows.
The interest in trading short-timeframe moves on BTC/USD has been evident even before May. Speculators have been increasingly eager to tap into the volatility of the market following the FTX meltdown in late 2022. The results of these short-term trades have been mixed, with realized profits and losses spiking in line with volatile price moves. Glassnode mentions that each rally and correction since the FTX fallout has led to a significant uptick in STH profit or loss.
Whales have also shown an elevated inflow bias to exchanges in recent times. At one point in July, whales accounted for 41% of total inflows. The analysis of whale netflow to exchanges can be utilized as a proxy for their influence on the supply and demand balance. The data shown in a screenshot demonstrates the fluctuating net flow volumes of Bitcoin whales to exchanges.
It’s important to note that whales are not the sole forces at work when it comes to BTC sales. Mining pool Poolin made headlines with its transactions destined for Binance, and miners potentially hedging profits also contributed to sell-side activity. These factors affect the overall market dynamics of Bitcoin trading.
In conclusion, the latest data from Glassnode highlights the prevalence of speculative investors in Bitcoin whale buying and selling in 2023. Short-term holders have emerged as a significant group within the whale community, and their dominance in exchange inflows indicates their active participation in short-timeframe trading. Whales have also shown an elevated inflow bias to exchanges, influencing the supply and demand balance. These findings shed light on the market behavior and provide valuable insights for investors and traders in the cryptocurrency space.
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