Newbie Bitcoin Whales Took $1.77 Billion In Loss During Price Crash: Data

On-chain data shows the new Bitcoin whales realized a massive amount of loss during the past week as BTC has gone through its drawdown.

Statistically, the longer an investor holds onto their coins, the less likely they are to sell them in the future. As such, the New Whales with their relatively short holding time are considered to represent the weak-minded side of the market, while the Old Whales represent the resolute side.

The behavior of these investors has been in line with their reputation during the recent price plunge, as the chart for the Bitcoin realized profit/loss shared by Maartunn shows.

From the graph, it’s apparent that the whales as a whole have realized a significant amount of losses in response to the bearish price action. The distribution of the realized loss, however, has heavily skewed toward the New Whales (shaded in blue in the chart).

In total, the STH Whales took $1.77 billion in losses during the past week. This is a notable amount and suggests that the big-money investors who entered the market recently have panic-capitulated in the crash. Meanwhile, the LTH Whales have kept their loss-taking contained, at least for now.

Bitcoin hasn’t gone below the Realized Price in this cycle even once, but it’s possible that if the current bearish trajectory continues, a retest could occur. “Every dip below that level has historically been a no-brainer DCA zone for long-term investors,” noted Maartunn.

At the time of writing, Bitcoin is trading around $63,300, down more than 13% over the past week.