New data shows that Bitcoin (BTC) whale buying and selling in 2023 will be mostly speculative investors.
In the latest edition of its weekly newsletter, The Week On-Chain, analytics firm Glassnode reveals that contrary to popular belief, opportunistic units are the most active whales.
The Birth of the “Short Term Holder” Bitcoin Whale.
A shift has taken place among bitcoin traders since BTC price action returned to $30,000.
As Glassnode shows, so-called short-term holders (STHs) – investors who hold coins for a maximum of 155 days – have become significantly more common.
As it turns out, the largest volume investor cohort, whales, also consists of a large number of STHs.
“Short-term holder dominance in exchange flows has exploded to 82%, which is now well above the long-term range over the past five years (typically 55% to 65%),” Glassnode explains.
“From this we can conclude that much of the recent trading activity is driven by cetaceans active in the 2023 market (and therefore classified as STHs).”Short-term bitcoin holders dominate FX inflows (screenshot). Source: Glassnode
Interest in trading short-term moves in BTC/USD was evident even before May. Since the FTX crisis in late 2022, speculators have increasingly looked to exploit volatility, both to the upside and to the downside.
The results were mixed: realized gains and losses routinely increased in line with volatile price movements.
“When we look at the level of profit/loss generated by the volume flowing into the exchanges from short-term holders, it is clear that these newer investors are trading local market conditions,” Glassnode continues.
“Every rebound and correction since the FTX fallout has resulted in an increase of more than 10,000 BTC in STH gain and loss respectively.” 
Profit loss of short-term Bitcoin holders on exchanges (screenshot). Source: Glassnode
Whales show an “increased tendency to inflows” on the exchanges
Currently, whales have ramped up their exchange activity, accounting for 41% of total inflows at one point in July.
Bitcoin whale to exchange inflows (screenshot). Source: Glassnode
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“The analysis of the whale netflow to exchanges can be used as an indicator of their influence on the supply and demand balance,” comments The Week On-Chain on the topic.
“Over the past five years, net flows from whales to exchanges have tended to fluctuate between ±5,000 BTC/day. However, whale inflows have sustained an elevated inflow bias between 4.0k and 6.5k BTC/day in June and July this year.”
Bitcoin whales and exchanges net flow volume (screenshot). Source: Glassnode
As Cointelegraph reported, whales are not the only forces at work in the BTC sale.
Mining pool Poolin made headlines with its Binance-bound transactions, while miners potentially locking in profits also contributed to sell-side activity.
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This article does not contain any investment advice or recommendations. Every investment and trading activity involves risk and readers should do their own research in making their decision.
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