Cryptocurrency

Whales selling at the 3rd most aggressive rate in BTC history

Let’s take a look at bitcoin transactions and accumulations between different groups using Cumulative Propensity Score (ATS) indicates this is the third-most aggressive dumping of Bitcoin (BTC) by whales in history.

A cumulative trend score is a metric that measures the behavior of different wallet cohorts. Measure the relative strength of each entity’s accumulation by looking at the size of the entity and the amount it has acquired or sold in the last 15 days.

Values ​​close to 1 indicate that the entities are accumulating, while values ​​close to 0 indicate that the groups are spread out. For Bitcoin, the metric focuses on whales and shrimp, excluding miners and exchanges from that group.

According to ATS, whales – those with more than 1000 bitcoins in their wallets – have been net sellers recently and for most of 2022. However, the shrimp, i.e. wallets with less than 1 bitcoin, were very active. Regarding accumulation.

Bitcoin Cumulative Trend Score
Bitcoin Cumulative Trend Score (Source: Glassnode)

The chart shows that while whales have accounted for most purchases since Bitcoin’s inception, whale acquisition rates have declined and are currently at their lowest.

The Whale Net Position Change chart identifies the net position change of the Whale BTC buy/sell over a 30-day period. Green indicates that whales are buying and their behavior is trending downwards since BTC’s inception.

Bitcoin whale net position changes
Changes in Bitcoin Whale Net Positions (Source: Glassnode)

By comparison, it has the third highest distribution rate. In his two cases of 2017 and his 2021 bull market, whales were sold for profit. However, the 2022 distribution is due to lower prices.

Whales are now sold to hedge losses. This means they are taking advantage of market upturns to offload digital assets.

Not all whales sell, but some such as Microstrategy are accumulating. But the fact that most whales are selling doesn’t bode well for BTC in the short term.

However, shrimp are still accumulating and new groups of short-lived hodlers are forming. I use it for

The fact that most new Hodlers have unrealized losses suggests they won’t be selling anytime soon.

Posted In: Bitcoin, Research

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