OKEx research shows sellers are trading larger as the price of BTC has risen.
Retail customers bought as the price rose.
Research from OKEx analyzed BTC / USDT trading patterns from August to November 2020 and found that retail traders were losing to whales.
In its research , the OKEx team filtered trades by trade size and direction to see how various types of market players performed during the bull run from August to November 2020 .
According to the researchers, sorting by business size is straightforward. However, the commercial orientation is difficult and the researchers have carefully explained their methodology.
The authors look at trades from a payee’s perspective using a Kaiko algorithm . That is, they look at the type of order placed and whether the buy or sell orders have been executed for each order size.
Bitcoin traders have been classified into four categories based on the size of the trade:
The OKEx team explains that these groupings correspond to market personalities and are generally referred to as retail traders, professionals, large traders or whales and institutions. The behavior 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 advance at around $ 15,000. Retailers joined the mix after that.
Transactions under two BTCs remained largely purchased until the end of November. However, trades above two BTCs were more often than not sales, according to the data. The following charts give a good idea of the trend:
Net percentage difference between purchases and sales based on the volume weighted average