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Bitcoin Realized Losses Hit Levels Last Seen Since the FTX Crash in a STH-Driven Sell-off

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Short-term holders are driving Bitcoin sell-offs, pushing realized losses to levels last seen since the FTX exchange crash in November 2022.

Bitcoin briefly reached $80,000 today, as it continues to flirt with lower prices. BTC capsized to the low earlier, marking an over 8% correction in the past 24 hours alone, before a rebound to trade at $84,780.

Impatient Short-Term Holders Dump Bitcoin Holdings

Meanwhile, the retracement has impacted short-term holders (STHs) the most. For context, wallets in this category are those that have held Bitcoin for less than 155 days, according to Glassnode. 

Notably, CoinMarketCap data shows that BTC has now corrected by 14% over the past year, putting most holders in this category at a significant portfolio drawdown. Instead of weathering the storms, these STHs have taken to realizing losses.

Glassnode data today confirmed this, with the market intelligence platform noting that the trend has reached insane levels. Specifically, realized Bitcoin losses have surged to heights last seen since the FTX implosion in November 2022, driven mainly by FUD among short-term holders.

An accompanying 7-day moving average chart highlights that over $800 million in losses have been realized, surpassing the over $600 million seen during the April market crash. The last time this large amount was sold at a loss was when the Sam Bankman-Fried-founded exchange collapsed, sparking a panic that led to over $1.2 billion in realized losses for both long and short-term BTC investors.

Bitcoin Realized Loss Chart/Glassnode
Bitcoin Realized Loss Chart/Glassnode

Crypto Market Unwinding

Glassnode noted that the scale and speed of these realized losses indicate an ongoing marginal demand washout, with investors unwinding their exposure to the crypto market. This process has separated paper hands from diamond hands, particularly as most of the panic has come from STHs.

Meanwhile, these short-term holder-dominated sell-offs might be a good sign for Bitcoin. With long-term investors remaining calm under such circumstances, it reassures their commitment and confidence in the asset’s near-term and future price trajectory.

Bottom Signal?

Remarkably, investor panic in this manner has historically marked Bitcoin’s bottom. The last two times BTC recorded this level of selloffs, its price rebounded sharply to record highs.

For perspective, Bitcoin bottomed in November 2022 following the FTX crash. From a low of $15,470, the crypto leader reclaimed its November 2021 peak of $69,000 by March 2024 and extended the run to six-figure valuations.

Again, the April crash saw Bitcoin dip to $74,441, but the token didn’t stay there for long. During the same month, it recovered to $95,000 and continued to rise, reaching its October all-time high of $126,220.

These historical precedents have strengthened convictions that Bitcoin could rebound from recent lows to target new highs in the near term. Whales have also begun buying massive amounts of Bitcoin, fueling the reversal narrative.

Bitcoin Options Traders Pile Into $75K Puts as Market Shows No Signs of Bottom

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The latest Bitcoin drop below $81,000 today has sparked a strong reaction in the options market.

According to Glassnode’s latest options analysis, traders are massively buying short- and mid-term put options at the $75,000 strike, indicating expectations that the price could fall further. This surge in demand for protection suggests many believe Bitcoin has not yet bottomed and may continue to move lower.

For context, Bitcoin’s price crashed more than 10% today, falling from $91,084 to as low as $80,600 before slightly rebounding to $84,000 at press time. Bitcoin is now 32% below its all-time high.

Despite this significant drawdown, traders are betting on much lower prices.

Bitcoin Short-Term Volatility Explodes Amid Panic

One of the clearest signs of stress is the surge in near-term implied volatility. Options expiring within 24 hours have jumped to 95% IV, rising 40 points in a single day. This type of rapid spike implies high expectations of large price swings driven by panic selling.

The wide gap between 1-week IV (above 65%) and 1-month IV confirms that fear is concentrated in the immediate future, with traders preparing for short-term instability.

Additionally, options skew has moved clearly in favor of puts (bearish traders), showing that market participants are increasingly seeking downside protection. Even 6-month puts have gained about two volatility points, which is unusual for what is typically a short-term pullback.

This widening skew across both short- and long-term expiries suggests traders are not just hedging the current drop; they’re also turning more cautious about Bitcoin’s outlook in the months ahead.

Put Volume Dominates

Over the past week, nearly 68% of all options trades have been puts, showing that the market is prioritizing protection over speculation. Traders are also taking advantage of the volatility gap by selling extremely high short-term volatility and buying longer-term options that are still relatively cheap.

This behavior is common during market drops, when traders need immediate protection but also want to stay prepared for the possibility of longer-lasting weakness.

BTC Market Outlook

The combination of soaring short-term volatility, strong put skew, and heavy buying of $75K puts shows that traders are bracing for more turbulence.

In other words, even after Bitcoin’s massive drop, the options market is not signaling a rebound. Instead, positioning suggests traders expect the possibility of a deeper pullback before any real recovery.

Overall, the data points to a stress phase in which downside bets dominate and confidence in a near-term bottom remains very low.

Tom Lee Reveals the Major Factor Behind the Ongoing Bitcoin Drop

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Fundstrat’s Tom Lee has highlighted events from the Bitcoin Oct. 10 crash, which he believes have led to the ongoing decline.

Notably, Bitcoin (BTC) continues to lose ground as November nears its close, trading around $84,685 after dropping 22.7% this month. This decline places BTC on pace for its worst monthly fall since June 2022, when it plunged 37.27% after the Terra ecosystem collapse. 

With the market under pressure, Fundstrat’s Tom Lee joined CNBC’s Brian Sullivan to discuss what he sees as the true source of the ongoing downturn.

Bitcoin Still Feeling the Effects of the Oct. 10 Crash

Specifically, Lee highlighted Oct. 10 as the moment the market began to unravel. He explained that crypto prices started weakening immediately after a major shock occurred that day, even before equities showed similar behavior. 

According to Lee, the event severely damaged market makers, who supply essential liquidity and keep trading functioning smoothly across exchanges. When their balance sheets took a hit, they reduced exposure, trimmed trading activity, and contributed to steady selling. 

“I think that this drip that’s been taking place for the last few weeks in crypto reflects this market maker crippling,” the Fundstrat Managing Partner said.

Sullivan asked Lee to explain what caused the break, noting that Bitcoin traded near $125,000 on October 6 or 7, stayed around $120,000 shortly after, and then tumbled into the mid-$80,000 range by November 20. 

A Market Glitch Caused the Oct. 10 Crash

In response, Lee pointed to automated systems that govern crypto trading, especially Auto-Deleveraging (ADL), which forces liquidations when collateral prices fall. He said the catalyst came from one exchange where a stablecoin briefly slipped away from its $1 level due to thin liquidity and internal pricing errors. 

Instead of pulling prices from across multiple venues, the exchange relied on its own quotes, which created a temporary mispricing. Specifically, this mismatch triggered ADL events and set off a wave of liquidations that spread across other exchanges.

Sullivan then asked who was responsible for the issue. Lee declined to identify specific parties but called the trigger a technical flaw in the exchange’s code. He compared the event to earlier episodes in traditional markets, such as portfolio-insurance-driven selloffs in 1987 and structural mortgage issues in 2009. 

He insisted that the ADL pricing failure will not occur again, explaining that developers will adjust the code to prevent a repeat. Lee also pointed out that leverage amplifies such events and urged investors to avoid excessive leverage in crypto markets.

Tom Lee Believes Bitcoin Will Recover Fast

Meanwhile, Sullivan asked whether the market is going through a temporary washout within a broader bull cycle. Lee confirmed this, suggesting that many macro and crypto funds currently sit on large cash positions and prefer to wait until the liquidity damage clears. 

He pointed out that past Bitcoin slumps often reversed quickly once forced sellers exhausted their positions and patient buyers stepped in. 

He suggested that Bitcoin could still test $77,000 and Ethereum could fall toward $2,500, but he expects a swift rebound once the market stabilizes. According to Lee, “The recovery from there to all-time highs will be faster than the decline.”

Expert Calls XRP Downtrend an Early Black Friday Sale

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An expert analysis has suggested this is a good opportunity to buy XRP at a discount price, as a recovery to new highs is on the horizon.

Notably, this commentary came from “R2CTrading” at a time when the market is in an obvious downward spiral. XRP slipped below the $2 support on Thursday, drifting further away today, with its intraday low at $1.84.

XRP on a Discount Sale

However, the TradingView analysis sees this correction as an “early Black Friday sale.” This suggests that XRP is trading at a discount, and market enthusiasts may have maximize this opportunity, as it may not last long.

The market watcher noted that the crypto market has been on a downtrend since late September. However, for XRP, this correctional momentum kicked in after it reached its yearly peak of $3.67 in July.

Meanwhile, the downtrend has intensified since the start of Q4. One notable market event occurred on October 10, when a tariff fallout between the US and China sparked a sharp drop across the crypto market, liquidating billions of dollars.

R2CTrading believes the historic crash created gaps in the crypto market. Notably, XRP fell to different price levels on several exchanges. On Kraken, it reached a low of $1.40, but the Binance chart on TradingView shows a steeper drop to $0.77.

Liquidity Level Attained

Notably, the analyst identified that the crash left a gap near $1.98-$1.99 on XRP. Currently, the token has reached this liquidity level, trading at $1.93 at the time of writing. The level also aligns with the critical support area around the region, which had cushioned negative price trends earlier.

Possible XRP Rebound/R2CTrading
Possible XRP Rebound/R2CTrading

From here, he expects a rebound to new all-time highs, trapping bears as the holiday season approaches for crypto. Specifically, his XRP price prediction suggests a move towards a new all-time high of $4, a level he suggested was just the beginning.

Notably, a rise to $4 from the current trading level represents a 107.2% increase, pushing XRP’s market cap beyond $241 billion. 

Nonetheless, Egrag Crypto had earlier emphasized that $4 is a low target for XRP. The top analyst shared that XRP won’t stop at $4 but could rally to $13.56 and then to $27.17.

What if XRP Slides Lower?

Meanwhile, bearish prospects remain as price weakness persists. If XRP fails to rebound, an earlier analysis suggests the next key supports to watch are $1.91 and $1.73.

XRP already reached $1.91 but has rebounded from here at the time of writing. The $1.73 support level is 10% below the current market level. Moreover, a separate analysis also predicted that XRP could drop to $1.55.

Bitwise Analyst Flags “Max Pain” Area for Bitcoin Between $73K and $84K

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Bitcoin may be approaching a key pressure zone, as new analysis highlights a potential market floor between $73,000 and $84,000.

Bitwise’s European head of research, André Dragosch, says that this area could define the next major cycle low and may determine how investors behave in the coming weeks.

Analyst Identifies a Critical Support Band

Specifically, in a post on X (formerly Twitter), Dragosch explained that the “max pain” region lies between BlackRock’s IBIT cost basis of $84,000 and MicroStrategy’s cost basis of approximately $73,000. He argues that final cycle bottoms often form where investor stress peaks, and this band fits that pattern.

As Bitcoin approaches these levels, he believes market positioning resets and forced selling become more likely. Specifically, when Bitcoin trades near an ETF’s average entry price, holders often reconsider whether continued losses justify holding the product.

Therefore, this tension reinforces the idea that the market may already be feeling pressure within the identified “max pain” zone

IBIT Outflows Highlight Rising Market Stress

Dragosch’s analysis is consistent with recent ETF activity. For instance, BlackRock’s IBIT posted $523 million in outflows on Tuesday, its biggest single-day withdrawal to date.

Moreover, total outflows over the past month reached $3.3 billion, or approximately 3.5% of its assets under management. These developments suggest that investors are becoming increasingly cautious.

MicroStrategy Shows Signs of Liquidity Strain

The situation is similar for MicroStrategy, another major holder of Bitcoin. The company’s net asset value recently slipped below 1, meaning its stock now trades at a discount to the value of its Bitcoin holdings.

If Bitcoin drops back to around $73,000, the company could feel even more pressure. Analysts say this might lead investors to take fewer risks, especially if the economy weakens at the same time.

Fed Uncertainty Adds to Market Caution

Meanwhile, this institutional stress is unfolding as the Federal Reserve enters its December meeting with unusually little visibility. A recent government shutdown delayed the release of major labor data, leaving policymakers without vital metrics.

According to FedWatchTool, expectations for a December rate cut have dropped to 35% on Friday. In addition, the Fed remains split between stubborn 3% inflation and the risk of easing policy too quickly.

Consequently, if rates remain unchanged, liquidity conditions may stay tight, a pattern that contributed to Bitcoin’s sharp sell-off earlier this month.

Stablecoin Reserves Offer Some Support

Despite these concerns, one indicator provides a more constructive signal. Exchange stablecoin reserves have climbed to a record $72 billion, mirroring past accumulation phases that preceded major Bitcoin rallies in 2025.

This buildup suggests available liquidity, though market participants may wait for clearer economic signals before deploying it.

Given this, analysts expect Bitcoin to stay between $60,000 and $80,000 through the end of the year if interest rates don’t drop. Until the macroeconomic picture stabilizes, investors are likely to remain cautious and watch key support levels.

Analyst Says XRP Will Not Go to $100 from ETF Inflows Alone

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An XRP community pundit suggests that the XRP price will not reach lofty three-digit targets only because of spot ETFs.

This bold contrarian commentary came from Moon, an XRP community figure and prominent market analyst, while bullish sentiments surrounding the spot XRP ETFs enveloped the entire community. 

Notably, at the time of his disclosure, the community was still anticipating the launch of the first spot XRP ETFs, which debuted a day later. Amid the anticipation, most community commentators took to social media to assess how these products could influence XRP price, projecting inflows worth billions in the first month.

XRP Price Will Not Surge from ETF Impact Alone

However, Moon, who has always been bullish on XRP, went against these suggestions. According to him, XRP will not go to ambitious price levels such as $100 based on the price impact from ETF inflows alone. He suggested that even a rally to $10 would not come from just ETFs.

Essentially, while Moon’s commentary does not stand against projections of an XRP rally to these targets, the market analyst believes other factors would need to overlap before the altcoin could claim such price regions. 

Notably, Moon himself has predicted that XRP could reach higher price levels. For instance, in May, he presented two targets for XRP based on Fibonacci levels. According to the analyst, the first target sits at $2.8 to $3, while the second target rests around the $4.5 to $4.8 mark. However, he based these targets on technical data.

Meanwhile, Moon has always been skeptical of ambitious price targets. Early this year, he accepted a $1,000 bet that XRP would not reach $1,000 by June amid multiple calls for this price target. He confirmed that he was hoping the $1,000 would materialize but maintained that it is not feasible.

Despite his skepticism surrounding these audacious targets, Moon has remained bullish on XRP’s long-term prospects. Still, he insists that ETFs will not be the only factors driving its price surge. However, he admitted that the launch of ETFs would be “great news,” as the products would grant exposure to investors not conversant with the crypto market.

XRP Down Despite ETF Success

Notably, two spot XRP ETFs have launched since Moon’s commentary, and despite these products seeing impressive figures, the XRP price has continued to slide with the rest of the crypto market. 

Specifically, the Canary Capital XRP ETF (XRPC) and the Bitwise XRP ETF (XRP) have recorded $410.76 million worth of inflows since Nov. 13. These products are now closing in on Solana ETFs’ $499.67 million cumulative inflow despite the Solana funds boasting six products and trading since Oct. 28. 

Meanwhile, the success of the XRP ETFs has done little for the XRP price. Today, XRP trades for $1.89, having relinquished the $2 support, with a decline of 16% over the past week. Interestingly, Bitcoin also saw similar declines immediately after its ETF products launched. However, a recovery ensued when the bearish pressure cooled.

Long-Term Bitcoin Trader Predicts When XRP Supply Will Turn Scarce and Price Could Surge

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A new prediction from a Bitcoin trader has added momentum to the growing narrative that XRP could face severe supply shortages sooner than expected.

According to AltcoinFox, a long-term BTC trader, the combined pressure from the upcoming wave of XRP spot ETFs may compress the available supply within months. He added that this could set the stage for aggressive price expansion.

Pending ETFs Could Drain Supply in Under a Year

Notably, AltcoinFox’s thesis claimed there are roughly “18 pending ETF” products. According to him, a unified daily intake of just $50 million per fund could overwhelm the available supply. Specifically, he speculated that these ETFs would collectively absorb $900 million per day.

Such capital flow removes hundreds of millions of XRP from the tradable market every 24 hours. AltcoinFox predicts that these inflows would make XRP “scarce within six to nine months,” leaving the price with only one likely direction: “up.”

While he paints a promising outlook based on the supposed 18 “pending ETFs,” it is worth clarifying that there are currently only four pending spot XRP ETFs: Grayscale, CoinShares, 21Shares, and WisdomTree.

Other asset managers, like Bitwise and Canary Capital, are already live and attracting inflows. Moreover, the outlook of daily $50 million inflow from each ETF does not align with current realities. For instance, over the last seven days, the Canary and Bitwise XRP ETFs have seen only $405 million in investment.

Earlier Models Support an Accelerated Supply Shock

Meanwhile, AltcoinFox’s projection aligns closely with earlier models from analyst Chad Steingraber.

In various analyses, Steingraber has repeatedly argued that XRP ETFs could absorb nearly 40 billion XRP in one year, more than two-thirds of the circulating supply.

He speculated that these accumulation rates would continue until XRP becomes too expensive for issuers to maintain the same level of daily buying, naturally forcing inflows to slow. Until then, ETF demand acts like a vacuum, pulling supply out of circulation long before price reflects the imbalance.

Tradable Supply Already Much Smaller Than Headline Numbers

The prospect of scarcity becomes even more apparent when considering XRP accessible on public exchanges. Exchange balances have been shrinking for months.

In September, The Crypto Basic reported that Coinbase’s XRP reserves dropped from around 970 million tokens to just 32 million, showing how rapidly liquidity is tightening.

Meanwhile, ecosystem projects are locking away billions more. Axelar’s mXRP and Flare’s FXRP aim to hold nearly 8 billion XRP combined, while Ripple’s 37 billion XRP and long-term investor allocations further reduce the active float.

Accordingly, market analysts estimate that retail investors may hold no more than 15% of the supply. For instance, Steingraber even suggested that only 21 million XRP may eventually remain available for active trading. While theoretical, this figure illustrates how extreme scarcity could become if ETFs scale as expected.

Why Price Hasn’t Moved Yet

Despite these forecasts, XRP’s price remains muted, still trading under the $2 range. Analysts say this lag is due to how ETF mechanics work. Most XRP accumulation occurs OTC, keeping demand invisible to spot order books.

This delayed price impact means ETFs are already quietly accumulating at scale, but the effects are not yet visible.

Dogecoin Faces Downside Risk but Bullish Divergence Signal Has Emerged

Dogecoin faces downward risk, but a bullish divergence signal suggests potential for a reversal.

Notably, the Dogecoin (DOGE) price action reflects a significant downturn in the past 24 hours, with a 10.3% drop, bringing its price down to $0.1409. The sharp decline comes amidst broader market concerns that have also impacted other top crypto like Bitcoin. This price movement shows a steep fall from a peak of around $0.1589 earlier in the day. 

Looking at Dogecoin’s performance over a longer timeframe, the meme coin has also faced a 13.7% drop over the past 7 days and a 26.3% decline in the last 30 days. This consistent downturn underscores growing investor caution, and analysts say further dip might be brewing. Dogecoin’s market cap currently sits at $21.44 billion, down 11.26% in the past 24 hours.

Dogecoin Price Analysis

On the technical end, Dogecoin’s weekly chart shows a strong downward trend, with volatility present as proven by the subsequent red candles. If the price continues to decline, it will test key Fibonacci retracement levels.

The 1 level (around $0.13001) is a critical support point, with further downside possible toward the 1.618 level (around $0.020). These levels remain important as they represent areas where the price could either find support or continue its decline if the bears break them.

Dogecoin 1W Chart
Dogecoin 1W Chart

The Stochastic RSI is at an extreme oversold condition, with the blue %K line at 0.00 and the orange %D line at 1.44. This suggests that Dogecoin could be nearing a bottom or reversal point, as oversold conditions often precede a bounce. The sideways movement of the lines indicate possible consolidation and reversal.

Overall, the chart shows a bearish trend, but the price is nearing potential support zones, and with the Stochastic RSI indicating oversold conditions, there could be a reversal soon. Traders should watch how the price behaves around the 1 Fibonacci level for signs of a reversal or further decline if support fails.

Can Dogecoin Reverse?

Elsewhere, a commentator on X points out a bullish divergence on the Dogecoin daily chart, which typically marks the end of a downtrend.

For the uninitiated, a bullish divergence occurs when the price of an asset makes lower lows, but the Relative Strength Index (RSI) forms higher lows. This suggests that while the price is still declining, the selling pressure is weakening, and a potential reversal to the upside could be imminent.

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His chart highlights three key periods where this bullish divergence occurred and marked the downtrend bottom. Specifically, the first instance appeared between August and October 2024, where Dogecoin’s price made lower lows while the RSI rose. This marked the bottom, with DOGE recovering afterward to above $0.45.

Meanwhile, the second divergence came up around March to May 2025, with price continuing to drop but the RSI forming a higher low. This again marked the bottom and led to a surge from below $0.13 to levels above $0.25. Now, another divergence has occurred, suggesting that the bottom may be close.

Bitcoin Falls Below Key Support as $964M is Wiped off Market: What’s Next?

Bitcoin (BTC) drops 8.5% below the $84,000 level, with further decline possible if the price fails to reclaim former support levels.

Bitcoin’s price has dropped sharply in the past 24 hours, falling by 8.5% to $83,815, reflecting broader market concerns.

Specifically, the BTCUSD chart shows a steep decline, with Bitcoin’s value slipping from over $92,000 to $83,461. This downturn comes as investors pull back from riskier assets, driven by persistent worries about inflated tech valuations and fading expectations for near-term Federal Reserve policy easing.

The market’s negative sentiment is clearly visible, with Bitcoin’s 24-hour trading volume reaching $109.3 billion. Over the past 7 days, Bitcoin has dropped 17.5%, and in the last 14 days, it has fallen 22.3%. This performance has left investors feeling increasingly cautious, hence the question of whether Bitcoin will fall further or benefit from a potential market rebound.

Bitcoin Price Analysis

Looking at the technicals, TradingView’s latest chart reveals a strong bearish trend, with Bitcoin failing to maintain key support levels. The Bollinger Bands on the chart show that Bitcoin has recently broken below the lower band, which sits at $85,101.90.

Screenshot 2025 11 21T110101810
Bitcoin

This breach indicates heightened market volatility, often signaling a potential continuation of the downward trend. The middle band (blue), which represents the 20-day simple moving average, is now acting as a dynamic resistance level at $98,789. If Bitcoin fails to recover above the middle band, further downside could be expected.

Elsewhere, the 1 Fibonacci level at $98,966, which has been a recent area of support, has now flipped into the key resistance BTC has to overcome. However, with the current price action below the middle Bollinger Band and below the lower Fibonacci levels, the outlook appears bearish, with the next potential support zones around $81,000 and $79,000 if the downward momentum persists.

$964 Million Wiped off the Market

Elsewhere, the Bitcoin liquidation data shows significant market activity, proving the heightened volatility in recent trading.

Over the past 1 hour, Bitcoin experienced a total of $507.26 million in liquidations. Of this, $500.36 million were from long positions, indicating a strong sell-off in the market, while $6.90 million came from short positions. This suggests that the downward pressure on Bitcoin is primarily affecting long traders.

Screenshot 2025 11 21T111817516

Looking at the 4-hour period, the total liquidations rose to $514.97 million, with $506.38 million in long positions being liquidated and $8.59 million from short positions. Similarly, over the 12-hour period, liquidations surged to $600.88 million, with $582.55 million in long positions and $18.32 million in short positions. 

The most dramatic figures appear in the 24-hour liquidation data, where a staggering $964.05 million were liquidated, with $931.65 million in long positions and $32.39 million in short positions. This shows that long traders are bearing the brunt of the market downturn, and optimism for price increases is being overshadowed by growing concerns over Bitcoin’s short-term outlook.

Jake Claver Says XRP Holders Who Prepare Early Will Be the Most Successful

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Jake Claver, CEO of Digital Ascension Group, has shared his view on which XRP investors he believes will be the most successful.

According to Claver, the XRP investors who ultimately come out on top won’t be those who bought at the lowest prices or accumulated the largest bags. Instead, he argues that the real winners will be the ones who establish strong security structures before problems arise.

In a new post, Claver explained that while no one can predict events such as lawsuits, audits, accidents, or even divorce. But investors can prepare for them well in advance.

His message builds on his previous warnings that hoping for future wealth is not the same as planning for it.

Why Structure Matters More Than Entry Price

Claver notes that many retail investors underestimate how exposed their crypto is when held personally. Since the IRS classified digital assets as property in 2014, crypto falls under the same legal frameworks as real estate. This means meaning trusts, LLCs, and institutional custody can protect holdings.

Crypto kept in a personal wallet is fully discoverable in a lawsuit. A judge can order access to private keys, and hiding assets can lead to penalties. Proper structuring via trusts, LLCs, and secure custody helps prevent these risks.

Estate Planning and Tax Benefits XRP Holders Overlook

Claver also highlighted that most investors ignore standard estate-planning tools. Assets passed to heirs receive a step-up in basis, wiping out large unrealized gains.

Families can also transfer up to $13.6 million per person tax-free using lifetime exemptions and annual gifting, and a revocable trust allows XRP to bypass probate entirely. These are routine strategies for wealthy families, but rarely used by everyday crypto holders.

Borrowing Against XRP Instead of Selling

Wealthy individuals typically borrow against appreciating assets rather than sell them. Claver says XRP holders can do the same. Borrowing from regulated lenders provides liquidity without incurring capital gains taxes, while institutional-grade custody adds another layer of protection.

Notably, Claver frequently recommends Wyoming digital-asset LLCs for their strong charging-order protection. Creditors cannot seize assets inside the LLC, only wait for distributions, and robust corporate records make the liability shield hard to challenge.

The Biggest Mistake XRP Investors Make

According to Claver, many investors still treat crypto like a lottery ticket. He stressed that the real threat is not volatility but a lack of preparation.

Even if XRP hits $100 or more, unstructured investors may fail to preserve their gains. Wealth strategist Armando Pantoja agrees, noting that many who gain sudden crypto wealth lose it within 2 years.

Accordingly, the XRP holders who win in the long term will be those who prepare now. No matter where the price goes, the edge belongs to those who understand that wealth is protected by planning, not by price.

“Problems are unpredictable,” Claver says. “Preparation is not.”