Bitcoin: Long term investors firmly hold, while new whales suffer a loss of 1 billion USD

The attraction from organizations is gradually declining, while key performance indicators are continuously falling. Even new whale groups are suffering significant losses. However… long term holders (LTH) remain steadfast in buying in, showing no signs of slowing down.

Below is a detailed overview.

Is BTC cooling down?

Source: AlphractalThe risk-return data of Bitcoin is showing signs of weakening. Both the Sharpe Ratio and Normalized Risk Metric (NRM) are on a downward trend, reflecting a year of underwhelming performance and waning investor enthusiasm.

Source: AlphractalAccording to Joao Wedson, CEO of Alphractal, this cautious phase in institutions could be a stepping stone for a market “reset”, or even an unexpected volatility.

In a post on X (formerly Twitter), he shared:

“When the indices fall, it often reflects the lack of enthusiasm and confidence of investors… and it is at this moment that the market tends to create surprises.”

Even if Bitcoin reaches new highs, the strongest explosive part of this cycle may be behind us.

Challenges of New Cash Flow

According to data from CryptoQuant, new whale groups are facing significant pressure. Since the end of October, Bitcoin has continuously fluctuated below the Average Cost Basis of approximately $110.8 thousand, pushing many investors into a state of deep losses.

Source: CryptoQuantIn just a few days, this group has recorded a loss of over 1 billion USD, with the figure reaching 515 million USD on November 7 alone. This sharp decline is testing the confidence of the whales, while also creating a clear tension between old money and new money in the market.

The next direction of Bitcoin may depend on whether these whales will patiently hold their positions or choose to sell off.

Long term holders (LTH) are “locking tight”

Source: CryptoQuantDuring the period from 24/10 to 7/11, whales holding more than 10,000 BTC have significantly increased their holdings, nearly doubling, accumulating an additional 36,000 BTC in just a few weeks.

Source: CryptoQuantThis accumulation model reminds us of the periods before strong market recoveries, as seen in 2020. While the majority of the market remains cautious, these large investors seem to be quietly preparing for the “long term game.”

Amid all existing fluctuations, the most powerful holders of Bitcoin remain steadfast, ready to await the next move of the market.

SN_Nour