Recent weeks have seen an increase in trading activity among Bitcoin (BTC) whales, with short-term holders (STH) taking a surprising lead. According to digital asset analytics firm Glassnode latest newsletter, titled The Week On-Chain, there has been a notable shift in the behavior of different levels of Bitcoin investors since the price of BTC surged above $30,000 in June.

Notably, Bitcoin whales exchange inflows reached a one-year high in July, accounting for 41% of the total, following positive market activity. Whales are significant players, and their actions often indicate the overall market health, providing insights to bullish investors about the netflow to exchanges.
Glassnode explained that historically, whale-to-exchange net flows have oscillated between ±5k BTC/day over the past five years. However, in June and July of this year, whale inflows have shown a sustained elevated bias, ranging from 4.0k to 6.5k BTC/day.
Besides whales, miners are also playing a crucial role in driving Bitcoin activities on exchanges, thanks to all-time high hash rates and looming mining difficulty. The mining pool, Poolin, is responsible for a significant portion of the inflow, as miners deploy various strategies to sell large volumes of Bitcoin on exchanges. The report from one of the crypto firms showed that miners are hedging their positions, leading to an increase in Bitcoin sent to exchanges.
Interestingly, the trend of BTC whales holding assets for extended periods has slowed down due to a speculative investor trend. Short-term holders, who tend to keep assets for a maximum of 155 days, have become more common on exchanges. Short-term holder dominance has spiked to 82%, significantly higher than the 55-65% range seen among long-term holders over the last five years.
The increase in short-term trading activity among whales can be attributed to the recent implosion of FTX, which has led whales to seek opportunities in the volatile price movements of the market. Glassnode noted that much of the recent trading activity is driven by whales active in the 2023 market and classified as short-term holders. These newer investors are focusing on trading based on local market conditions.
As of now, BTC is trading at $29,238, and there have been outflows recorded in Bitcoin-related products after five consecutive weeks of inflows.
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