It’s been just revealed that the on-chain analyst Willy Woo said that there is a particular investor cohort that is driving the Bitcoin bull markets these days.
He is saying that small holders aka entities that are holding less than one BTC are4 continuously stacking Bitcoin as they are outpacing the selling of larger entities or whales.
Here’s what he said: “Chart: Weekly net flows to small holders (of less than 1 BTC). It’s retail that [drives] Bitcoin bull markets. When they stop buying, that’s a bear market warning. They haven’t stopped buying. Last 30 days: Whales sold [4,000] BTC, plebs [retail] bought [31,000] BTC.”
It also seems that whales only influence the short-term price action of Bitcoin, according to what he has to say. This is a rumour that used to circulate in the crypto space before, with people believing that whales are triggering the price of Bitcoin and the whole state of the market.
“Whales only drive the [short-term] market (which is the meme that most fixate on),” he said.
He continued and said: “In the macro timescale, I refer to whales, dolphins, and sharks bootstrap the start of a bull market. Plebs drive the middle and end of the bull market.”
Small whales are offsetting the selling pressure
He looked at the whale activity and noted that smaller whales are offsetting the selling pressure that is coming from their counterparts.
“My data is *all whales* (holders above [1,000 BTC] minus the exchanges who are also ‘whales’ in the raw data),” he said.
He continued and said that “What’s happening is large whales selling, small whales accumulating, netting to near neutral.”
Regarding the price of Bitcoin these days, at the moment of writing this article BTC is trading in the green and the king coin is priced at $31,642.71.