Bitcoin Whales Liquidate $1B in BTC Over the Past Fortnight: CryptoQuant

Bitcoin Whales Unload $1 Billion in BTC, CryptoQuant Data Reveals

Crypto News- In the past two weeks, long-term Bitcoin holders and miners have been among the major sellers of the cryptocurrency, according to a report by on-chain analysis firm CryptoQuant shared with CoinDesk. The report indicates that wallets monitored by CryptoQuant reveal that “whales” – a term used to describe large holders of any cryptocurrency – have offloaded over $1.2 billion worth of BTC during this period. These sales were likely conducted through brokers rather than directly on the open market.

Traders are still not increasing their Bitcoin holdings, and the demand growth from large holders (whales) remains weak.

CryptoQuant’s analysts

They also highlighted that the liquidity of stablecoins has continued to slow down, marking the slowest growth rate since November 2023.

Analyzing Bitcoin Trading Patterns Through UTXO Metrics

Data tracked by CryptoQuant shows that these traders have been reducing their Bitcoin holdings since the price of BTC soared above $70,000 in late May. This trend is evident from the declining UTXO age bands. UTXO, or unspent transaction output, is a crucial metric used by traders to analyze buying and selling patterns across different market cycles. A decrease in UTXO age generally signals increased Bitcoin activity and, consequently, more selling. Conversely, an increase in UTXO age suggests more holding within the market.

Market analysts suggest that Bitcoin miners might be increasingly turning their attention to the flourishing artificial intelligence (AI) sector. This shift is likely driven by the need to sell their Bitcoin rewards to fund operations in the AI space. Both Bitcoin mining and AI require powerful computing resources, which miners already possess.

One of the biggest trends since the Bitcoin halving this year is miners increasingly shifting to the AI business. The reduction in mining rewards has prompted miners to seek alternative revenue streams. With AI companies demanding energy-intensive data centers, Bitcoin miners are gradually boosting their revenue by collaborating with AI firms.

Lucy Hu

Bitcoin Price Declines Amidst Strong Dollar and Market Shifts

Since June 5, the price of Bitcoin has dropped from $71,000 to just over $65,000 as of Wednesday, influenced by a strong dollar, a move away from riskier assets, and growth in traditional stock indices. Additionally, U.S.-listed exchange-traded funds (ETFs) that track Bitcoin have experienced net outflows of over $600 million in the past week, marking their worst performance since late April.

Some traders caution that, without new growth catalysts, Bitcoin’s price could potentially dip as low as $60,000. Over the past 24 hours, Bitcoin’s price has decreased by 0.6%, according to CoinDesk data. In contrast, the CoinDesk 20 (CD20) index, which tracks the largest tokens, has seen a 1.2% increase.

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