Bitcoin (available on Coinbase) day traders appear to be on the rise. The Financial Times reports that there is as much Bitcoin (available on Coinbase) (BTC) owned by short-term speculators as there is by HODLers, or long-term investors, now.

Bitcoin (available on Coinbase) Day Traders Catching Up

Blockchain research company Chainalysis discovered the Bitcoin (available on Coinbase) data. This data shows that the amount of BTC held by day traders has increased to 5.1 million Bitcoin (available on Coinbase) since December 2017. Bitcoin (available on Coinbase) HODLers, people who have held BTC for longer than a year, togETHer hold around 6 million Bitcoin (available on Coinbase).

While these numbers aren’t quite on par yet, the chief economist at Chainalysis, Philip Gradwell, believes that this might be a “fundamental driver” behind the biggest crypto’s recent price decline.

Gradwell explained that the growing number of Bitcoin (available on Coinbase) day traders is causing a rise in liquidity for the coin, which could be part of what’s causing the Bitcoin (available on Coinbase) price to drop.

Whaling It Up

Other data discovered by Chainalysis should come as no surprise to most. Chainalysis also pointed out that a large amount of BTC is held by Bitcoin (available on Coinbase) whales. Whales in crypto are typically large corporations or groups.

There is around 17 million Bitcoin (available on Coinbase) available and circulating. Of that, almost a third is held by only a few Bitcoin (available on Coinbase) wallets. The Chainalysis data revealed that approximately 1,600 Bitcoin (available on Coinbase) wallets each held about 1,000 BTCs, which, all togETHer, would amount to around 5 million Bitcoin (available on Coinbase).

This may also be affecting Bitcoin (available on Coinbase)’s price. It’s very possible that the Bitcoin (available on Coinbase) whales could be manipulating prices (for Bitcoin (available on Coinbase) and other cryptocurrencies) to their advantage. If a whale sells some BTC, it’s enough to cause the price to drop, thus creating a chain reaction of FUD making others sell their BTC and making the Bitcoin (available on Coinbase) price drop even further. Then, the whale(s) buy up even more BTC when the price is lower than they initially sold it for.

This may or may not be happening, but there are concerns circulating that this could be the case.

What do you think?