Recently, there has been an unprecedented exodus among Bitcoin whales, leading to significant shifts within their cohort. Glassnode, a prominent blockchain analytics firm, conducted an in-depth analysis of this historic event. Let’s explore the findings that shed light on the remarkable impact of whales on the market, their intriguing internal dynamics, and the dominance of short-term holders (STHs) driving recent trading activity.
Whale Exodus: A Game-Changer in Bitcoin Markets
Bitcoin whales, holders of substantial amounts of the crypto, have been instrumental in shaping market dynamics. According to Glassnode’s data on July 24, Binance whales alone accounted for 34% of the selling pressure in the last 30 days, indicating their key influence on recent market movements.
Whale Flow to Exchanges: A Historical Balance Decline
One of the most intriguing findings from the research is the major decline in the total balance of whale entities on exchanges. In the last month, whale flow to exchanges witnessed a historic monthly balance decline of -148,000 BTC. This unprecedented trend has raised questions about the motives and strategies of these influential players.
The Whale Influx and Involvement in Market Movements
As Bitcoin’s price surged above $31,000, the influx of whale funds into exchanges skyrocketed. Glassnode’s data revealed an impressive daily whale inflow of +16,300 BTC, signifying their active involvement in recent market movements. Notably, this prevailing influence constituted 41% of the total inflows into exchanges, aligning with the magnitude of vital market incidents like the LUNA crash and FTX’s failure.
Binance Emerges as a Prime Destination for Whale Inflows
Among all exchanges, Binance emerged as the primary destination for whale inflows, with 82% of whale-to-exchange flows heading there. Coinbase accounted for 6.8%, while all other exchanges collectively represented 11.2% of whale inflows. This suggests that Binance is the preferred platform for large-scale Bitcoin transactions.
Whale Reshuffling: Unveiling Internal Dynamics
As the total balance of whales underwent a decline, fascinating internal dynamics emerged within this group of important investors. Within the whale cohort, certain entities saw their balances grow, while others experienced decreases. This observation prompted researchers to coin the term ‘Whale Reshuffling,’ signifying that not all whales adhere to a uniform strategy.
Whale Group’s Changing Proportions in Total Supply
Remarkably, the proportion of Bitcoin’s total supply held by whale entities has declined significantly over time. From constituting 63% of the total supply at the beginning of 2021, whales now account for only 46%. This steady downward trend in their dominance showcases an evolving landscape for Bitcoin ownership.
Short-Term Holders: A Driving Force Behind Market Activity
The research also highlighted the dominance of short-term holders (STHs) among whale entities. STHs actively trade the market, contributing to significant trading activity during rallies and corrections. Glassnode’s data indicates that these people represented a staggering 82% of exchange inflows, significantly higher than the long-term range over the last five years.
The recent historic exodus of Bitcoin whales has triggered significant shifts within their cohort, making it a defining moment in the cryptocurrency market. Glassnode’s insightful analysis revealed the substantial influence of whales on market dynamics, the intriguing internal reshuffling of whale entities, and the dominant role of short-term holders in recent trading activity. As Bitcoin continues to evolve, understanding the behavior of these influential players will remain crucial for grasping the market’s overall direction.
Giancarlo is an economist by profession with a career spanning nearly two decades. His professional journey has seen him assume vital roles in various government and private organizations such as the Department of the Interior and Local Government (DILG), the National Economic and Development Authority (NEDA), Megaworld Corporation, and the China Banking Corporation in the Republic of the Philippines.
In addition to his civic and corporate pursuits, his forward-thinking approach has led him to manage several prominent websites in the banking and finance sector, notably the Australia-based RateChoice, where he immersed himself in the world of emerging financial technologies and where he found particular interest in Bitcoin all the way back to 2013.
Prior to his addition to Blockzeit’s dynamic team, he held an essential role as Project Manager for initiatives encompassing blockchain, stablecoin, mining, special economic zone development, and iGaming. This noteworthy chapter in his career unfolded under the auspices of InPlan Consultancy Services, Inc., the think-tank of IMPERO Consortium Management Corporation headquartered in Manila, Philippines, and Tokyo, Japan. InPlan, led by a distinguished retired Cabinet member of the Philippines, collaborates directly with IMPERO’s core management team, contributing to strategic planning and business development endeavors.