Bitcoin LTHs Ramp Up Holdings, New Whales Suffer $1B Losses
Bitcoin LTHs ramp up accumulation even as new BTC whales face over $1 billion in losses. Since late October, Bitcoin has traded below its $110.8 K average cost basis, pushing newer whale cohorts into deep red—over $1 billion in realized losses, including $515 million on Nov 7 alone (CryptoQuant data). Meanwhile, Bitcoin LTHs (long-term holders with over 10,000 BTC) have doubled holdings, adding 36,000 BTC between Oct 24 and Nov 7. Key metrics—the annualized Sharpe Ratio and Normalized Risk Metric (NRM)—have been trending lower amid cooling institutional demand, highlighting a risk-reward shift. Alphractal CEO Joao Wedson notes that metric dips often precede unexpected market reversals. The contrast between short-term pressure on new whales and steadfast accumulation by LTHs mirrors patterns seen pre-2020 recovery, suggesting the market may be poised for a reset despite current volatility.
Neutral
Although the decline in Bitcoin’s Sharpe Ratio and NRM reflects waning institutional demand and short-term bearish pressure—evidenced by new whales realizing over $1 billion in losses—the robust accumulation by Bitcoin LTHs signals confidence among the strongest hands. Historical parallels, notably the 2020 cycle, show that sustained LTH accumulation often precedes significant market recoveries. Therefore, while immediate trading sentiment may be cautious, this divergence suggests a neutral near-term outlook with potential long-term bullish implications if LTH buying persists.