The recent increase in Bitcoin inflows on the Binance exchange created the impression that there is intense selling pressure in the markets. However, the latest report from crypto data analysis company CryptoQuant reveals important details regarding the source of the sales. According to the data, sales in the last month appear to have come mainly from short-term investors; Large and long-term investors had a limited role in this process.
Short-Term Investors Became the Determinants in Sales
According to CryptoQuant’s analysis, an average of 8,700 Bitcoins per day were sent to Binance by short-term investors last month. This amount constitutes a significant part of the selling pressure in the stock market. It is stated that the majority of those selling are investors who have recently joined the market and are more responsive to price declines. The report found that the main reason for the weakness in the market was not the loss of confidence of long-term investors, but the tendency of short-term investors to avoid risk.
Mid-cap Investors Led Flows
In addition to large investors, which are called whales in the crypto market, analysis by value showed the effectiveness of stakeholder types. Accordingly, an average of approximately 3,500 Bitcoins per day were moved to the exchange from “fish” wallets, and 2,400 Bitcoins were moved to the exchange from wallets in the “shark” category. There was a daily flow of less than 1,000 Bitcoins through whale wallets. Smaller wallets, called “shrimps” and “crabs” in the market, also transferred Bitcoin to the exchange, but their overall impact remained secondary.
This distribution; It shows that the sales wave is more widespread among medium-sized wallets, rather than being concentrated in a few large wallets. It is noted that large investors took part in the market in a more limited way during this period, so a collective and organized sales movement did not occur.
Market Structure and Results
According to the report; The source of the selling pressure was largely from new investors who sold their positions in a short time. There was no mass outflow or large-scale selling wave in long-term wallets. Additionally, the impact of whale movements on the market structure remained minimal.
In the evaluation made by the institution, the statement was made: “The latest data reveal that long-term investors do not panic and the selling pressure in the market is a reflection of short-term entries and exits.”
According to the data, with the decrease in risk appetite, short-term investors took on the role of liquidity providers, while the weight of long-term investors in the market remained constant. Especially during this period, Binance stood out as one of the main platforms where high volume transactions were carried out.
The absence of widespread long-term investor panic selling or coordinated whale selling was effective in preventing price movements from becoming excessive during this downturn. While historically mass outflows from large wallets increased market volatility, this time the spread of sales to a wide range of investors ensured that volatility remained more limited.
