In its latest weekly report titled Whale Watching, Glassnode, an on-chain analytics firm, identifies the major trends in the asset’s flows. After hovering in the $30,000 range for a significant time, Bitcoin has slipped down into the $29,000 levels.
Data suggests that since the first attempt to enter in the $30,000 range in mid-April, the balance of most wallet size cohorts entered a regime of distribution which lasted through mid-June but then the pattern began to shift during the second rally to $30,000 in late June. The report analyses the Trend Accumulation Score by Cohort and shows that the smallest entities (<100 BTC) have slowed down their spending over the last month.
On the other hand, the whale subdivisions (>1,000 BTC) have showed divergent behaviour, with >10k BTC whales distributing and 1000-10,000 accumulating at a significantly higher rate. The chart below shows that whale entities are currently accounting for 46% of the total supply, down from 63% in early 2021.
At this point, it is important to note that whale entities will include exchanges, as well as large centralized holdings such as exchange traded funds (ETF) products, GBTC, WBTC, and corporate holdings like Microstrategy.
Now, to understand what proportion of the assets are being held by the exchanges in the total share of whales, analysts isolate only coins flowing between Whale entities and exchanges. To this, Glassnode reveals that the aggregate whale balance has declined by 255,000 Bitcoin since 30 May.
Analysts add that this is the largest monthly balance decline in history, hitting -148,000 BTC per month. This indicates that there are noteworthy shifts happening within the Bitcoin whale cohort worth diving deeper into. Dividing the whale cohort based on the size of holding, Glassnode has observed following changes in the supply owned by each sub-cohort over the last 30-days:
- Whales with (>100,000) BTC have seen a balance increase of +6,600 BTC.
- Whales with (10,000-100,000) BTC have reduced their balance by -49,000 BTC.
- (1,000-10,000) Whales have seen a balance increase of around +33,800 BTC.
Now, after studying the main recent trends about the whales, inflows to exchanges has been historically large, with 255,000 BTC flowing from whales to exchanges. Simultaneously, internally, whale sub-cohorts are seeing balances shift in size by between -49,000 to +33,800 BTC. Hence, in aggregate, the whale group has seen just -8,700 BTC in net outflows.
To this, Glassnode writes that aggregate balance change has been relatively flat recently, but there are significant changes taking place both internally and via exchange flows. Hence, it is highly possible that these whale entities are moving funds internally which the analysts call as “Whale Reshuffling.”
Notably, the whale movements for Bitcoin are looked as being a key influence on market price action and the whales are also becoming increasingly active in the recent times. In particular, 42% of exchange inflows are related to whale entities, with a super-majority of these destined for Binance following the lawsuit.
In recent times, Bitcoin investors as a whole have been active in the market while the market has been relatively stable. Amid the increasing price trail, the asset is yielding substantial profits and keeping investors optimistic. As of writing, Bitcoin is trading at $29,138.90, slipping from $30,000 range and a 0.13% decline over the past day.