BTC whales made a profit during the Bitcoin rally

BTC whales made a profit during the Bitcoin rally from August to November: OKEx report

  • OKEx’s research shows that sellers are making larger transactions as the BTC price has risen.
  • Retail customers bought as the price rose.
  • Professionals bought during the American Thanksgiving holiday.

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Research by OKEx analysed BTC/USD business models from August to November 2020 and revealed that retail traders were losing to whales.

In its research, the OKEx team filtered Bitcoin Code trades by trade size and direction to see how different types of market players acted during the bull run from August to November 2020.

Getting directions

According to the researchers, sorting by store size is simple. However, commercial orientation is difficult and the researchers have carefully explained their methodology.

The authors look at the trades from the perspective of a taker using a Kaiko algorithm. In other words, they examine the type of order placed and whether buy or sell orders were executed for each order size.
Ranking by Bitcoin trader category

Bitcoin traders have been classified into four categories according to the size of the trade:

  • <0.5 BTC
  • 0.5 < 2 BTC
  • 2 < 5 BTC
  • 10+ BTC

The OKEx team explains that these groupings correspond to market personalities and are generally referred to as retail traders, professionals, major traders or whales and institutions. The behaviour of each type of trader falls roughly into these categories and volumes.

So, what happened?

According to OKEx, small retail traders were on a buying spree as BTC continued to grow at around $15,000. Retailers joined the mix after that.