Bitcoin whales have experienced the largest monthly decline in their balance, according to a recent report by Glassnode. These whales, who are known for accumulating more coins during stagnant market conditions, have seen a significant decrease in their holdings. Glassnode’s analysis revealed that the aggregate whale balance has declined by approximately 255k BTC since May 30, marking the largest monthly balance decline in history.
The report also highlighted some noteworthy shifts within the Bitcoin whale cohort. It was found that the recent whale activity has been primarily driven by short-term holders (STHs) who hold assets for a maximum of 155 days. These newer investors have become more common and are actively trading in local market conditions. Interestingly, each rally and correction since the FTX implosion has witnessed a significant uptick in STH profit or loss, with over 10k BTC being affected.
In recent months, whales have been actively contributing to exchange activity, accounting for 41% of the total. Binance has received the majority of whale inflows, with nearly 82% of the funds being directed to the exchange. This influx of whales into exchanges is a departure from the historical norm, as whale-to-exchange netflows have typically oscillated between ±5k BTC/day over the past five years. However, in June and July of this year, whale inflows have consistently remained between 4.0k to 6.5k BTC/day.
The decline in whale balances and the shift in their trading behavior indicate a changing landscape within the Bitcoin market. As new investors actively participate and whales continue to make significant moves, it will be interesting to see how these dynamics shape the future of Bitcoin and its price performance.
Disclaimer: This article is not financial advice. The information provided is for educational purposes only and should not be considered as investment advice. Cryptocurrency investments are inherently risky, so readers should do their own research and consult with a financial advisor before making any investment decisions.
