In the On Chain ecosystem, it is informally discussed throughout the ecosystem that whales, those wallets with +1000 BTC, are the Smart Money, but the reality is different.
Smart Money is that which is in
The investor who achieves the highest profitability in each cycle has nothing to do with having more or fewer BTC.
We can see in the metric 'BTC: Realized Price New Whales STH vs Old Whales LTH (Not CEX or Miner)' a comparison between the Realized Prices (purchase averages) of STH whales (-155 days holding BTC) and LTH whales (+155 days holding BTC).
It is clearly seen that STH whales with Realized Prices of $90159.8 are at a loss, so they are not Smart Money; they are not the best investors.
Being Smart Money has a lot to do with knowing how to invest at the right moment and not the amount invested. For some, it may be a matter of luck when to invest, but for others, it is knowledge and experience in the ecosystem.
One of the best metrics where we can appreciate Smart Money in the BTC ecosystem is usually Bitcoin: Realized Price - UTXO Age Bands, where we can see the Realized Price for each holding band.
Generally, Smart Money is positioned in the band of 2 to 3 years before the halving, and they tend to have the best average in the entire cycle, thus making the most profit in each cycle. Therefore, being a whale does not qualify you as Smart Money; it is about investing at the right moment of each cycle.
#Bitcoin #SmartMoney