Bitcoin’s price action has long been influenced by whale entities, which are powerful players with substantial holdings that can significantly impact the market. Glassnode’s latest Week On-Chain report sheds light on the recent surge in whale activity, presenting valuable insights into their behavior.
Tracking Bitcoin Whale Behavior: Recent Months’ Surge
Through analyzing on-chain entities, Glassnode has identified whales (holding 1,000+ BTC) as key players actively interacting with exchanges in recent weeks. Notably, whale inflow volumes to exchanges constitute 41% of the total, with 82% of these flows heading to Binance.
Furthermore, many active whale entities are categorized as Short-Term Holders (STHs), displaying notable activity around local market peaks and troughs. To comprehend their on-chain behavior better, Glassnode has developed indicators to spot periods of significant profit or loss-taking events.
During the market’s attempt to break above $30,000 in mid-April, most wallet-size cohorts experienced a distribution phase lasting until mid-June. However, the trend shifted during the second rally to $30,000 in late June. Larger whale subdivisions demonstrated divergent behavior, with >10,000 BTC whales distributing and 1,000-10,000 Bitcoin whales accumulating at a higher rate.
Glassnode’s analysis has shown a noteworthy net reduction of -8,700 BTC across all whale groups in the last month. Despite this relatively flat aggregate balance change, significant internal shifts and exchange flows indicate a phenomenon called “Whale Reshuffling.” Whales might be moving funds internally during these periods.
Glassnode’s correlation tool reveals periods when whale entities dominate global exchange net flows. Notably, Binance is the primary recipient of almost 34% of whale inflows during the recent July rally, indicating an extraordinary uptick in Binance dominance over the last 12 months.
Whales have recently dominated exchange activity, particularly Short-Term Holders (STHs). This cohort has shown a drastic surge in dominance across exchange inflows, suggesting their active involvement in trading local market conditions.
However, whale entities continue to wield substantial influence over Bitcoin’s market dynamics, with their presence becoming more pronounced in recent months. By monitoring their behavior and interactions with exchanges, Glassnode’s analysis sheds light on the dynamics driving the cryptocurrency market, particularly the impact of whale entities and short-term holders.
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