Bitcoin’s Realized Losses Hit $5.7 Billion as Investors Keep Accumulating

Bitcoin (BTC) has seen a 10% decline over the past month as various wallet holders transitioned from distributing to accumulating.

Data indicates that this accumulation trend, in conjunction with significant realized losses, suggests a possible change in momentum.

Key takeaways:

• Bitcoin whales and mid-sized holders are aggressively amassing BTC at the current prices.

• Whales and sharks are currently absorbing almost 240% of the newly mined BTC supply.

• Bitcoin’s realized losses approached $5.8 billion on November 22—a record since the FTX collapse—indicating a clear capitulation sign.

Strong Bitcoin accumulation at current levels

Following a recent drop to $80,000, Bitcoin whales have increased their risk appetite, seizing the dip as a buying opportunity.

According to data from Glassnode, the Bitcoin accumulation trend score (ATS) is nearing 1 (refer to the chart below), illustrating heightened accumulation by major investors.

Related: Bitcoin’s ‘momentum is igniting,’ but these are the BTC price levels to watch

An ATS close to 1 (dark blue) shows that whales are accumulating more Bitcoin than they are distributing, while a value near 0 (light yellow) indicates distribution or lack of accumulation.

The increase in trend score points to a shift from distribution to accumulation across nearly all cohorts, paralleling a similar accumulation trend observed in July, which preceded Bitcoin’s rise to its previous all-time high of $124,500 reached on August 14, from below $100,000 in June.

Further insights from Glassnode reveal a resurgence in purchasing by small to mid-sized entities holding between 10 and 1,000 BTC, which have been actively accumulating over the last few weeks.

Bitcoin whales absorb nearly 240% of new supply

Supporting this accumulation trend is the yearly absorption rate metric, indicating that whales and sharks are now absorbing roughly 240% of BTC’s annual issuance, while exchanges are rapidly losing coins.

Interestingly, Bitcoin’s yearly absorption rate by exchanges has dropped below -130% amid ongoing outflows, signifying an increasing preference for self-custody or long-term investment.

Moreover, larger holders (those with 100+ BTC) are acquiring nearly one and a half times the new issuance—a historic rate of accumulation among sharks and whales.

This signifies a structural shift as traditional finance increasingly embraces BTC, highlighted by the rise of Bitcoin treasury companies and fresh ETF interest.

Bitcoin realized losses surpassed $5.7 billion

Additional insights from Glassnode reveal that Bitcoin’s recent downturn triggered the most significant spike in realized losses since the FTX collapse in late 2022.

The chart below indicates that realized losses for short-term holders (STHs) reached $3 billion on November 22, while long-term holders (LTHs) incurred losses of $1.78 billion. The total realized losses reached $5.78 billion after Bitcoin declined to $80,000 on November 21.

Glassnode further stated:

“STHs represent the majority of losses, while the losses from LTHs remain relatively contained, signifying that the stress is primarily on recent buyers.”

As reported by Cointelegraph, short-term Bitcoin traders are experiencing the greatest pressure from the ongoing downturn in terms of unrealized losses, with ETFs accounting for a maximum of 3% of the recent selling pressure.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.