Bitcoin Whales Sell Over $1 Billion in Two Weeks: What’s Next for BTC?
In the past two weeks, Bitcoin whales have sold over $1.2 billion worth of BTC, according to CryptoQuant. This significant offloading
In the past two weeks, Bitcoin whales have sold over $1.2 billion worth of BTC, according to CryptoQuant. This significant offloading by large holders, including long-term investors and miners, has raised questions about the future direction of Bitcoin prices.
The sale of such a substantial amount of Bitcoin has been facilitated primarily through brokers rather than open market transactions.
Key Points
- Bitcoin whales sold over $1.2 billion worth of BTC in the past two weeks.
- ETF netflows are negative, with $460 million in outflows.
- Miners are shifting focus to the AI sector, increasing BTC selling.
- Market stability and renewed buying interest could signal a rebound.
Selling Activity and Market Impact
CryptoQuant’s analysis indicates a marked increase in selling activity, particularly among long-term Bitcoin holders and miners. “Traders are still not increasing their Bitcoin holdings, and large holders’ (whales) demand growth is still missing strength,” analysts noted.
CryptoQuant's analysis indicates that these sales have mostly been executed through over-the-counter (OTC) deals, a method often used by whales to avoid impacting the market price directly. Despite these large transactions, Bitcoin's price has remained relatively stable,…
— narv (@DeFiNarv) June 21, 2024
The observed decrease in UTXO age bands—indicating a higher turnover of Bitcoin—supports this trend, showing that these whales are liquidating their assets.
Additionally, the ETF market has mirrored this trend, with net outflows of $460 million in the same period. This reflects a broader sentiment of caution among institutional investors and large holders, contributing to the downward pressure on Bitcoin prices.
Shift in Miner Focus
A notable shift in miner behaviour is also contributing to the sell-off. Market observers suggest that many miners are redirecting their resources towards the booming artificial intelligence (AI) sector.
Given the diminishing rewards from Bitcoin mining post-halving, this pivot to AI, which also relies on high-performance computing chips, seems logical. Consequently, miners are selling their Bitcoin rewards instead of holding them, adding to the selling pressure.
The AI sector’s appeal is growing, with its potential for significant returns overshadowing the profitability of Bitcoin mining. This shift underscores the dynamic nature of technological investments and how shifts in industry focus can impact related markets.
Future Outlook and Potential Rebound
Despite the current selling trend, there is potential for a market rebound. The decrease in stablecoin liquidity, growing at the slowest pace since November 2023, suggests a possible consolidation phase. This could set the stage for renewed buying interest once the market stabilizes.
CryptoQuant’s report also highlighted that the recent high of over $70,000 for BTC in late May has led to a sell-off as whales and miners took profits. The market is now in a critical phase where the actions of these large holders will likely dictate the short-term price movements of Bitcoin.
According to CryptoQuant’s report, strong demand is driving the price of Bitcoin and Ethereum higher:
$1 billion in new large Bitcoin investors are inflowing every day.
After the ETH ETF was approved, the average daily purchase of ETH by permanent holders reached 40,000 ETH,… pic.twitter.com/V1sajh4qIb
— Jessica (@Jessica_1986_) June 17, 2024
In conclusion, while the recent sell-off by Bitcoin whales and miners has exerted downward pressure on BTC prices, the market dynamics are complex.
The shift of miners to the AI sector and the broader economic environment will play crucial roles in shaping Bitcoin’s near-term future. Investors should watch for signs of renewed buying interest and stability in the market as potential indicators of a rebound.
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