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Bitcoin Whales Sold Over $1B BTC in Past Two Weeks: CryptoQuant

Jun 18, 2024
    Long-term bitcoin holders and miners have been significant sellers of the cryptocurrency in the past two weeks with little indication of renewed buying interest. This trend has been observed through a decrease in UTXO age bands, indicating increased selling activity.Some opine miners are shifting their focus to the booming AI sector due to the diminishing mining rewards post-halving, which may have increased selling activity.
As an experienced analyst, I’ve closely monitored the recent selling trend in Bitcoin (BTC) by long-term holders and miners. Based on the data from CryptoQuant, these groups have been significant sellers over the past two weeks with minimal renewed buying interest.As a researcher studying the cryptocurrency market, I’ve observed some intriguing trends in recent days. According to data from CryptoQuant, long-term Bitcoin holders and miners have been among the most active sellers over the past two weeks. At present, there are few indications of renewed demand from this group.

Large-scale Bitcoin holders, often referred to as “whales,” have disposed of approximately $1.2 billion worth of Bitcoin over the past fortnight, most likely through broker channels rather than selling directly on cryptocurrency exchanges.

As a researcher studying the cryptocurrency market, I’ve noticed that traders haven’t been adding more Bitcoin to their portfolios recently. The demand from large Bitcoin holders, or “whales,” has yet to show significant growth. Additionally, the liquidity of stablecoins has slowed down significantly, marking the slowest growth rate since November 2023.

Traders have reduced their Bitcoin holdings since the cryptocurrency surpassed $70,000 in value during late May, according to data from CryptoQuant regarding aging UTXO bands.

In every Bitcoin transaction, fresh UTXOs, or unspent outputs, are generated. Traders utilize these UTXOs to monitor buying and selling trends during past, present, and future market phases. A decline in UTXO age signifies heightened Bitcoin activity and often implies increased selling. Conversely, an increase in UTXO age suggests more market holding.

Bitcoin Whales Sold Over $1B BTC in Past Two Weeks: CryptoQuant
Experts in the financial market suggest that miners might be shifting their focus from bitcoin to the thriving artificial intelligence (AI) industry for their mining activities. This could result in them selling their earned bitcoins instead of hoarding them. Both sectors require substantial computing power to process and manage data, a resource that miners currently possess in abundance.
One trend that has emerged significantly since this year’s Bitcoin halving is that miners have been shifting their focus towards artificial intelligence (AI) businesses, according to Lucy Hu, a senior analyst at crypto fund Metalpha. She revealed this information in a Telegram message. The decrease in mining rewards has led miners to explore alternative ways to increase income. With AI companies requiring energy-consuming data centers, Bitcoin miners are capitalizing on this by generating revenue through sales with these AI firms.

Starting on June 5th, Bitcoin prices have seen a significant decrease from around $71,000 to slightly above $65,000 by Wednesday. This downward trend can be attributed to several factors including a stronger US dollar, investor preference for safer assets, and impressive growth in traditional stock markets. In the meantime, U.S.-listed Bitcoin ETFs experienced substantial net outflows totaling over $600 million last week – marking their poorest weekly performance since late April.

Some traders have warned of a move to as low as $60,000 in the absence of growth catalysts.

According to CoinDesk’s data, Bitcoin has experienced a decrease of 0.6% over the last 24 hours. Conversely, the CoinDesk 20 Index (CD20), which tracks the performance of the largest cryptocurrencies, has registered a gain of 1.2%.

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2024-06-19 14:32