Bitcoin (BTC) has fallen by 10% in the past 30 days, as multiple groups of wallet holders transitioned from distribution to accumulation.
Data indicates that this shift towards accumulation, along with unprecedented realized losses, suggests a possible change in momentum.
Key takeaways:
Bitcoin whales and mid-sized holders are actively accumulating BTC at current prices.
Whales and sharks now account for nearly 240% of the newly mined BTC supply.
Bitcoin’s realized losses approached $5.8 billion on Nov. 22, marking the largest since FTX, a classic sign of capitulation.
Intense Bitcoin accumulation at current price points
Bitcoin whales have become more risk-seeking following the recent dip to $80,000, seeing it as a buying opportunity.
Glassnode data shows that the Bitcoin accumulation trend score (ATS) is approaching 1 (see chart below), signifying strong accumulation from large investors.
Related: Bitcoin’s ‘momentum is igniting,’ but these are BTC price levels to monitor
An ATS closer to 1 (dark blue) indicates that whales are acquiring more Bitcoin than they are selling, while a value nearer to 0 (light yellow) indicates distribution or a lack of accumulation.
The increase in trend score reflects a shift from distribution to accumulation across nearly all groups. This change mirrors a previous accumulation pattern seen in July, which coincided with Bitcoin’s ascent to its former all-time high of $124,500 on Aug. 14, from below $100,000 in June.
Further data from Glassnode highlights a resurgence in purchases by smaller to mid-sized wallets holding between 10 and 1,000 BTC, who have been accumulating rapidly over the last few weeks.
Bitcoin whales capture nearly 240% of new supply
Supporting this accumulation trend is the yearly absorption rate metric, which reveals that whales and sharks are absorbing around 240% of BTC’s annual issuance, while exchanges are experiencing historic outflows.
Significantly, Bitcoin’s yearly absorption rate by exchanges has decreased to below -130% due to ongoing outflows. This indicates a growing trend toward self-custody and long-term investment.
Additionally, larger holders (100+ BTC) are acquiring almost one and a half times the new issuance, representing the fastest accumulation rate among sharks and whales in Bitcoin’s history.
This signifies a structural transformation as traditional finance increasingly adopts BTC, particularly with the rise of Bitcoin treasury firms and new ETF interest.
Bitcoin realized losses exceeded $5.7 billion
Additional data from Glassnode indicated that Bitcoin’s recent decline “triggered the largest surge in realized losses since the FTX collapse in late 2022.”
The chart below shows that BTC realized losses among short-term holders (STHs) reached $3 billion on Nov. 22, while losses among long-term holders (LTHs) totaled $1.78 billion. The cumulative realized losses from all holders reached $5.78 billion following Bitcoin’s drop to $80,000 on Nov. 21.
Glassnode noted:
“STHs account for the majority of the losses, while LTH losses remain relatively contained, indicating that stress is primarily on more recent purchasers.”
As Cointelegraph reported, short-term Bitcoin traders are under the most strain from the current downturn regarding unrealized losses, with ETFs making up 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.
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. While we strive to provide accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness, or reliability of any information in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph will not be liable for any loss or damage arising from your reliance on this information.
