Major investors who recently bought Bitcoin are now facing a harsh reality. Since late October, new crypto whales have accumulated over a billion dollars in realized losses. With BTC price still below their average acquisition cost of $110,800, their positions have become financial traps.
On-chain data reveals a concerning situation for recently created whale addresses. These wallets, which typically hold between 100 and 1,000 BTC, have accumulated their positions at elevated price levels. Their average cost basis stands at $110,800, a level that Bitcoin has struggled to reclaim for several weeks.
This situation illustrates particularly unfortunate entry timing: These institutional or wealthy investors, attracted by the bullish momentum, now find themselves trapped in underwater positions. The volume of realized losses exceeds $1 billion since late October, confirming partial capitulation among new entrants and persistent selling pressure on the market.
The behavior of these new whales highlights the psychology of the crypto market. Unlike historical holders, these recent investors lack experience dealing with Bitcoin’s extreme volatility. Their pain tolerance remains low, hence the selling observed at the first signs of decline.
The $110,800 zone becomes a major psychological resistance, concentrating losing positions. If Bitcoin breaks through this level with conviction, these whales could become buyers again. Monitoring the SOPR (Spent Output Profit Ratio) of these cohorts remains crucial: Still below 1, it confirms that the majority of spending occurs at a loss. Historically, complete capitulation of this cohort often precedes a local bottom.
The Bitcoin market is going through an extended consolidation phase, trapped between support and resistance, without an obvious catalyst. Modest trading volumes reflect general apathy and a distribution phase. For traders, the $110,800 threshold remains a key level to watch.
A bullish breakout could trigger a relief rally, while a new wave of capitulation would create attractive entry points for patient investors. The fundamental lesson remains: Even large holders are not immune to poor timing, and only rigorous risk management combined with patience allows one to survive Bitcoin’s cycles.
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