Over the past 30 days, Bitcoin (BTC) has experienced a 10% decline as various wallet holders transitioned from distributing to accumulating.
Data indicates that this accumulation, alongside record realized losses, suggests a possible shift in momentum.
Key takeaways:
BTC accumulation is being aggressively pursued by whales and mid-sized holders at current price levels.
These groups are absorbing nearly 240% of the newly mined BTC supply.
As of Nov. 22, Bitcoin’s realized losses approached $5.8 billion, marking the highest level since FTX, indicative of a classic capitulation signal.
Significant Bitcoin accumulation at current levels
Following the recent dip to $80,000, Bitcoin whales are increasing their risk appetite by seizing the opportunity.
According to Glassnode data, the Bitcoin accumulation trend score (ATS) is nearing 1 (see chart below), indicating strong accumulation behaviors among large investors.
Related: Bitcoin’s momentum is gaining, with important BTC price levels to monitor
An ATS approaching 1 (dark blue) indicates that whales are accumulating more Bitcoin than they are distributing, whereas a score near 0 (light yellow) suggests the opposite.
The increase in the trend score signifies a shift from distribution to accumulation across nearly all cohorts. This trend mimics a similar accumulation pattern seen in July, which coincided with Bitcoin’s ascent to a prior all-time high of $124,500 achieved on Aug. 14, from sub-$100,000 levels in June.
Additionally, data from Glassnode indicates an uptick in purchases by small to mid-sized entities holding between 10 and 1,000 BTC, which have been actively accumulating in recent weeks.
Bitcoin whales absorb nearly 240% of new supply
The yearly absorption rate metric reinforces this accumulation trend, revealing that whales and sharks are now taking in about 240% of BTC’s yearly issuance, while exchanges are witnessing historic outflows.
Significantly, Bitcoin’s yearly absorption rate by exchanges has fallen below -130% amid ongoing outflows. This suggests a growing inclination toward self-custody or long-term investment.
Meanwhile, holders with over 100 BTC are acquiring nearly one and a half times the new issuance, marking an unprecedented accumulation speed among sharks and whales in Bitcoin history.
This signifies a structural change as traditional finance increasingly adopts BTC, particularly with the rise of Bitcoin treasury companies and growing ETF demand.
Bitcoin realized losses surpassed $5.7 billion
Further insights from Glassnode indicate that the recent Bitcoin drawdown has “triggered the largest spike in realized losses since the FTX collapse in late 2022.”
The chart below shows that BTC realized losses by short-term holders (STHs) reached $3 billion on Nov. 22, while long-term holders (LTHs) faced losses of $1.78 billion. The total realized losses across all holders hit $5.78 billion after Bitcoin dipped to $80,000 on Nov. 21.
According to Glassnode:
“STHs represent the majority of the losses, while LTH losses remain comparatively low, indicating that the pressure is primarily on recent buyers.”
As reported by Cointelegraph, short-term Bitcoin traders are facing the greatest pressure amid the current downturn regarding unrealized losses, with ETFs contributing a maximum of 3% to the recent selling pressure.
This article does not constitute investment advice or recommendations. All investment and trading moves carry risks, and readers should perform their own research before making decisions.
This article does not offer investment advice or recommendations. Every investment and trading move involves risk, and readers should undertake their own research when making decisions. While we aim for accuracy and timeliness, Cointelegraph disclaims any guarantee regarding the completeness or reliability of the information herein. This article may include forward-looking statements that come with inherent risks and uncertainties. Cointelegraph will not be liable for any losses or damages arising from reliance on this information.
