Bitcoin Whale Exchange Inflow Share Hits 1-Year High – Over 40%

bitcoin (B T cNew data suggests whale buying and selling in 2023 will be mostly from speculative investors.

In the latest edition of its weekly newsletter, “week on the series”, The analysis company Glassnode showed that, contrary to popular belief, opportunistic entities are the most active whales.

The birth of the bitcoin “short-term holder” whale

Ever since BTC price action returned to $30,000, there has been a turnaround among bitcoin traders.

As Glassnode shows, so-called short-term holders (STH) – investors who hold coins for up to 155 days – have become quite common.

It turns out that the group of investors with the largest volume, whales, also hold a significant amount of STH.

It added, “The dominance of short-term holders on exchange flows has increased to 82%, which is now well above the long-term limit (typically 55% to 65%) over the past five years.”

“From this we can conclude that the majority of recent trading activity is driven by whales operating in the 2023 market (thus classified as STH).”

Bitcoin short-term holders dominate exchange inflows (screenshot). Source: Glassnode

Interest in short-term trading on BTC/USD was visible even before May. Since the FTX downturn in late 2022, speculators have been eager to take advantage of both the upside and downside volatility.

Results have been mixed – realized profits and losses have regularly increased in line with volatile price movements.

Glassnode further added, “When we look at the volume of gains/losses realized from short-term holder volume coming into the exchange, it becomes clear that these new investors are trading in local market conditions.”

“Each rally and correction since the FTX outage has seen STH gain or lose 10,000 BTC respectively.”

Bitcoin short-term holder exchanges pros and cons (screenshot). Source: Glassnode

Whales show “increased inflow bias” in exchanges

Near the present, whales have increased exchange activity, accounting for 41% of total flows at one point in July.

Bitcoin whale-to-exchange inflow (screenshot). Source: Glassnode

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According to “The Week On-Chain”, “an analysis of whale netflows across exchanges can be used as a proxy for their impact on the balance between supply and demand.”

“Whales-to-exchange netflow has fluctuated between ±5k BTC/day over the past five years. However, in June and July this year, whale inflows have maintained a high flow bias of between 4.0 and 6.5k BTC/day.

Bitcoin whales and exchange net flow volume (screenshot). Source: Glassnode

like cointegraph informed ofWhales are not the only force when it comes to selling BTC.

Mining pool Poolin grabbed headlines with its trading for Binance, while also contributing to selling activity as miners potentially hedging profits.

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This article does not constitute investment advice or recommendations. Every investment and trading move involves risk and readers should do their own research when making decisions.

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