Research Summary
The report focuses on the influence of Bitcoin whale entities on the market. It highlights the recent increase in whale activity and the development of tools to monitor their behavior. The report reveals that whales, defined as entities holding 1k+ BTC, have been interacting significantly with exchanges, with 41% of total inflow volumes attributed to them. Over 82% of these inflows are destined for Binance. The report also identifies many of these active whale entities as Short-Term Holders, showing notable activity around local market peaks/troughs.
Actionable Insights
- Whale Reshuffling: Despite extreme values shown in the Trend Accumulation Score, whale entities have been somewhat neutral in recent months. The report suggests that these entities are moving funds internally, a phenomenon referred to as ‘Whale Reshuffling’.
- Whales and Exchanges: During the recent rally, whale inflow volumes to exchanges picked up significantly, hitting +16.3k BTC/day. This is a whale dominance of 41% of all exchange inflows, which is comparable to both the LUNA crash (39%) and the failure of FTX (33%).
- Short-Term Whales: Short-Term Holder Dominance across Exchange Inflows has exploded to 82%, which is now drastically above the long-term range over the last five years (typically 55% to 65%). This suggests that much of the recent trading activity is driven by Whales active within the 2023 market.
