Bitcoin dropped 7% on May 21 as whales — addresses holding at least 1,000 BTC — moved large sums to exchanges, triggering a single-day realized loss of $616 million, the highest since March 2025.
Whale Accumulation Rate Plunges to -151%, an All-Time Low
The group that had been absorbing most newly mined BTC for months has reversed course. The annual whale accumulation rate has fallen to negative 151%, the lowest on record for Bitcoin. Outflows from investment funds and exchange-traded products reflect dwindling institutional confidence. A similar pattern appeared in January 2025, when an uptick in exchange inflows preceded a 38% drop in Bitcoin's value within a month. Conversely, coordinated buying in Q4 2024 helped push BTC above the historic $100,000 mark for the first time.
Long-Term Holders Book $513.6M Loss in a Single Day
The sharp price decline inflicted heavy losses. Long-term holders suffered a single-day realized loss of $513.6 million, while short-term traders lost $101.8 million. Total realized losses surged from $41.5 million to $616 million in under 48 hours. Analyst Woominkyu highlighted that whales sent more than 8,000 BTC to exchanges during this period. Glassnode's accumulation trend score dropped near zero, signaling a broad shift from buying to distribution among major players.
Market Sentiment Flips From Accumulation to Distribution
Glassnode data now indicates that not just whales or institutional funds, but nearly all types of Bitcoin investors are either offloading positions or refraining from buying. Over the past year, most investor cohorts have moved from accumulation to distribution, driving a wider risk-off mood across the market. A similar episode in January 2025 saw Bitcoin fall to $60,000 within a month; analysts note that current technical indicators resemble patterns seen in previous steep corrections.
Short-Term Selling Pressure Intensifies, Recovery May Take Time
The combination of sharp realized losses and major holders turning to distribution has rapidly amplified selling pressure. Investors who bought at higher prices appear eager to sell to avoid deeper losses. In contrast, coordinated accumulation during the 2024 election period paved the way for record prices. Today's rapid sell-off points to waning market confidence, suggesting any rebound could take considerable time to materialize.
Glassnode's data summary: accumulation has ceased across nearly all investor groups, with widespread distribution now underway, building additional selling pressure.