Large investors among institutional players and individual whales booked profits during the autumn rally in Bitcoin, buying mainly on pullbacks and selling at local highs. This is stated in a recent OKEx exchange study.
Unlike whales, retail investors largely bought during Bitcoin’s price rises.
The study covered the period from August 1 to November 30, 2020, analysing data for OKEx’s most popular BTC/USDT pair.
Trading activity was divided into several categories: transactions up to 0.5 BTC (retail investors), 0.5 BTC – 2 BTC (professional traders) and 5 BTC – 10 BTC and more than 10 BTC (large traders, whales and institutions).
As shown in the table below, in October and November, despite rising prices, retail investors continued to buy.
Data: OKEx.
Major traders were accumulating significant positions around $10,000, locking in profits during the rally.
The study also showed divergent investor behaviour during the market drop on Thanksgiving, November 26. Small investors panicked and started selling, while whales, by contrast, took advantage of the moment to buy anew.
Data: OKEx.
«As shown, all except the majority of retail traders booked profits when Bitcoin hit a new all-time high on November 30, new all-time high», the report says.
According to a recent Chainalysis study, since the start of the year the number of wallets with a balance of more than 1000 BTC increased by 302. Balances on the corresponding addresses over this period rose by 1.4 million BTC.
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