Bitcoin (BTC) has experienced a significant decline of 10% over the last 30 days, with various groups of wallet holders transitioning from distribution to accumulation. This shift in behavior is noteworthy, as it may indicate a potential change in momentum for the cryptocurrency.
Data from reputable sources suggests that this accumulation, coupled with record realized losses, could be a sign of a larger trend. The Bitcoin Accumulation Trend Score (ATS) is a key metric to consider, as it provides insight into the behavior of large investors.
Key Takeaways
Several key points stand out in the current Bitcoin market:
- Bitcoin whales and middle-market holders are aggressively accumulating their BTC holdings at current levels.
- Whales and sharks are now absorbing almost 240% of the newly mined BTC supply, indicating a significant shift in market dynamics.
- Bitcoin’s realized losses reached nearly $5.8 billion on November 22, the largest since FTX, a classic sign of capitulation.
Strong Bitcoin Accumulation at Current Levels
Bitcoin whales have increased their risk appetite following the recent decline to $80,000, using the decline as an opportunity to accumulate more BTC. According to Glassnode data, the Bitcoin Accumulation Trend Score (ATS) is close to 1, indicating strong accumulation by large investors.
An ATS closer to 1 (dark blue) indicates that whales are accumulating more Bitcoin than they are distributing, and a value closer to 0 (light yellow) indicates that they are distributing or not accumulating. The increase in the trend value indicates a transition from distribution to accumulation in almost all cohorts.
Bitcoin accumulation trend assessment. Source: Glassnode
Additional data from Glassnode shows a resurgence in purchases by small and medium-sized companies holding between 10 and 1,000 BTC, which have been accumulating aggressively in recent weeks.
Bitcoin accumulation trend assessment by cohort. Source: Glassnode
Bitcoin Whales Absorb Nearly 240% of New Supply
This accumulation trend is reinforced by the annual absorption rate metric, which shows that whales and sharks are now absorbing around 240% of annual BTC issuance, while exchanges are losing coins at a historic pace.
Notably, Bitcoin’s annual absorption rate by exchanges has fallen below -130% due to continued outflows. This signals a growing preference for self-custody or long-term investments.
Annual Bitcoin Absorption Rates. Source: Glassnode
Meanwhile, larger holders (100+ BTC) are absorbing almost one and a half times the new issuance, which is the fastest accumulation rate among sharks and whales in Bitcoin history.
Annual Bitcoin Absorption Rates by Whales and Sharks. Source: Glassnode
Bitcoin’s Realized Losses Exceeded $5.7 Billion
Additional data from Glassnode showed that Bitcoin’s recent decline “triggered the largest spike in realized losses since FTX’s collapse in late 2022.”
The chart below shows that BTC’s realized losses by short-term holders (STHs) reached $3 billion on November 22, while losses by long-term holders (LTHs) reached $1.78 billion. Total realized losses by all holders amounted to $5.78 billion after Bitcoin fell to $80,000 on November 21st.
Bitcoin suffered losses from LTHs and STHs. Source: Glassnode
As reported by Cointelegraph, short-term Bitcoin traders have come under the most pressure from the current downturn in terms of unrealized losses, with ETFs accounting for a maximum of 3% of the recent selling pressure.
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