Little by little we are approaching the end of 2021, and precisely at this point it is useful to analyze the way in which the Bitcoin whales close the year. To do this, we will briefly analyze its performance in the last hours. As always, this activity should be put into context to better investigate the status not only of the whales, but of the market as a whole.
Before continuing, we must clarify that all the data contained in this publication can be viewed on the Whale Alert page, and Twitter. This is only a micro approximation to one of the factors that can influence the performance of BTC, but it is not the only one.
Summary of Bitcoin whale activity to assess the way in which they close the year
From this Monday until the moment of publication, Bitcoin whales have mobilized a total of 131,709 BTC through 18 operations. Most were made on December 27, adding a total of 106,504 BTC mobilized only this day, although with some peculiarities that we will analyze below. Then, this Tuesday there were two movements totaling 25,205 BTC.
On the surface, it appears that the predominant trend was transferring between unknown wallets, with 110,978 BTC at this time. This would be equal to 84.26% of the total in these last hours. But it should be noted that on Monday there were eight operations in this regard, four for 15,047 BTC and another four for 10,158 BTC. It would be necessary to see in detail if these amounts are repeated in the next few hours.
This December 28 these amounts were repeated, but not in the same sense, since 15,047 BTC went from an unknown wallet to an Exchange, suggesting a possible sale on the way. Meanwhile, the amount of 10,158 BTC was repeated. These would be the two operations registered on this day until the moment of publication.
Also, during this time the accumulation remains behind with 3,684 BTC mobilized from exchanges to unknown wallets through six operations. Finally, only one transaction between exchanges was registered for a total of 1,000 BTC.
Although the time frame is not long enough to affirm a persistent trend, what is clear is that there is no definite accumulation or sale. The foregoing then leads us to delve a little into what has happened to the performance of Bitcoin as a cryptocurrency to see a more complete and complex picture.
Understanding the performance of Bitcoin
Bitcoin closed the year up 70.24%, having experienced a tumultuous and volatile 2021. The proof of this is that in the last 24 hours it has lost about 7.54% of the price it had, reaching US $ 47,830, and even so the progress is impressive.
A new all-time high, bullish races and all this amid the continuation of the crisis that began with the COVID-19 pandemic. New innovations, regulations in China, a whole year to remember if you own Bitcoin or any cryptocurrency.
According Glassnode“Looking back at 2021, it appears to be a year that is best described as a macro consolidation, with a high, albeit volatile time frame.” We couldn’t have used better words. Another interesting fact that we can highlight is that during this year long-term holders added 1,846M BTC to their holdings, while the supply of short-term holders decreased by 1,428M BTC.
Meanwhile, “total miners’ revenue increased 58% to date, and more than 440% since the halving event in May 2020.” All of this indicates that even though the recent correction of the all-time high has moved lower, there is a certain tendency to retain BTC. An increasing proportion of the offer was also placed at an unrealized loss, according to the cited report.
Other details to keep in mind as we approach the end of the year
Exchange balances have seen very little net change throughout the year. Exchange reserves have dropped from 2.623 billion BTC at the beginning of the year to 2.56 billion BTC. This represents a net decrease of 67.8 thousand BTC, a reduction of only 2.5% from the initial balance, according to Glassnode.
We can see this behavior more clearly in the Net Volume of entry / exit of exchanges, which has spent the year 2021 oscillating between ± 5k BTC. In fact, over the course of the last week, we’ve seen another reversal of net trade outflows, back to net trade inflows. In the immediate term, it is something to watch to see if the trend softens or strengthens as we approach the new year.
Considering that Bitcoin whales are the addresses with the highest amounts of BTC under their belt, it is normal that this is the first place where we can monitor these outflows or inflows of funds on exchanges.