Bitcoin: Whales Begin to Exit... $600 Million Daily Loss Outcry

▲ Bitcoin (BTC), Cryptocurrency Decline/AI Generated Image

As Bitcoin (BTC) fell about 7% from its short-term high of $82,800, several groups of wallet holders shifted from accumulation to distribution. With realized losses exceeding $600 million in a single day, an analysis suggests that the market's upward momentum has weakened.

Cointelegraph reported on May 21 (local time), citing Glassnode data, that Bitcoin whales and investors have reduced accumulation and moved towards distribution. As the price of Bitcoin dropped to $76,000, realized losses surged to $616 million in a single day.

The annual absorption rate indicator also revealed weakening accumulation. This indicator shows how much of the newly issued Bitcoin over the past year has been absorbed by the market. While the annual absorption rate for exchanges improved from below -100% in April to -75% recently, the accumulation strength of whales has fallen to a historical low. Cointelegraph noted that in January, a similar bounce in exchange absorption rate was followed by a 38% drop in Bitcoin from $98,000 to $60,000.

The movements of large holders are even more distinct. Large holders, possessing between 100 BTC and over 1,000 BTC, have been absorbing more than 150% of the newly issued supply, but this ratio has sharply declined since mid-April and shows a significant difference from the record levels of November 2025. The accumulation rate for whales holding over 1,000 BTC dropped to -151%, marking the lowest level in Bitcoin's history.

This trend, coupled with significant capital outflows from US Bitcoin spot ETFs, has led to interpretations that long-term holding conviction has weakened. Glassnode's Accumulation Trend Score (ATS) also declined to near zero. This figure indicates that whales are either selling Bitcoin or not engaging in further accumulation. Cointelegraph explained that a shift from accumulation to distribution has been observed across almost all investor cohorts.

CryptoQuant analyst Woominkyu analyzed that whales sent over 8,000 BTC to exchanges on Monday alone. He stated, “As Bitcoin rose to a high of $82,196, whales began sending coins back to exchanges,” adding, “This is a typical sign of smart money realizing profits during a bullish phase while retail investors experience increasing FOMO.”

The realized loss indicator shows that market stress has rapidly increased. Realized losses for long-term holders amounted to $513.6 million on Tuesday, while short-term holders recorded $101.8 million in realized losses. Total realized losses, based on all holders, expanded to $616 million after Bitcoin dropped to $76,000 on Monday. This is the largest single-day realized loss since March, and a surge of over 1,500% in less than two days compared to $41.5 million on Sunday.

Most of the losses occurred among long-term holders. Losses for short-term holders were relatively limited, indicating that market pressure was concentrated on investors who had held for a longer period. If investors who have held Bitcoin for more than six months start selling near their entry price after a prolonged decline, it could create significant selling pressure that hinders price recovery. The Bitcoin market has moved into a phase more sensitive to increased selling pressure than to short-term upward expectations, due to the combination of weakening whale accumulation, ETF outflows, and surging realized losses.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*