Bitcoin Whales Sleep as Transfers Make Up Just 19% of Volume

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Data shows that Bitcoin whales have been dormant recently, as transactions over $10 million now account for just 19% of total volume.

Bitcoin Volume Dominance of $10M+ Transfers Declines to 19%

According to on-chain analytics firm Glassnode, these large transactions accounted for 42.8% of all BTC volume at the beginning of November 2022. “Volume” here refers to the total amount of Bitcoins traded on the network at any time. daytime.

The “relative distribution of transfer volume by size” (the relevance indicator here) tells us how much of this BTC volume is contributed by the groups of transactions of different sizes in the market.

These groups define ranges between which the values ​​of the transfers belonging to a given group lie. For example, the $10,000 to $100,000 group includes all transactions with a value of at least $10,000 and at most $100,000.

Now, below is a graph that shows the trend of Bitcoin relative transfer volume distribution by size over the past few years:

The dominance of each transaction group in the BTC market | Source: Glassnode on Twitter

As the chart above shows, the shares of different transaction groups have recently changed in the Bitcoin market. Specifically, the dominance of the group of deals with transfers worth more than $10 million (with no upper limit) has decreased significantly over the past few weeks.

Since only whales process transfers carrying such large amounts, this group of transactions can be used to track the activity of these gigantic holders. At the beginning of November last year, the transaction dominance of this cohort was around 42.8%. However, since then, the percentage of volume contributed by this group has dropped to just 19%.

The value of the indicator is now the same as December 2020, meaning the metric has now reset to pre-2021 levels. after the collapse of the FTX crypto exchange. There could be some implications for this trend.

The first could be that these whales have already exhausted their selling appetite during the FTX crash and are no longer interested in selling the coin. This would suggest that the recent lows may have been the bottom of this bear market. Back in the bear market of 2018-2019 as well, the dominance of this cohort fell to low values ​​when the cyclical lows were reached.

However, another thing this trend implies is that these whales haven’t been buying recently either. If they were buying around the current lows, there would still be significant trading activity from them.

In the past, bullfights were fueled by these whales as their dominance increased during these times. Thus, if the metric shows significant improvements in the volume of these transactions, then Bitcoin could see a return of an uptrend. But for now, the activity of this cohort continues to be muted.

BTC price

As of this writing, Bitcoin is trading around $17,200, up 3% in the past week.

BTC soars | Source: BTCUSD on TradingView

Featured image by Gabriel Dizzi from Unsplash.com, charts from TradingView.com, Glassnode.com

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