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Bitcoin Whales and Miners Offload Over $1B BTC in Past Two Weeks

In the past two weeks, Bitcoin whales and miners have offloaded over $1 billion worth of BTC. This significant selling activity coincides with net outflows from U.S.-listed bitcoin ETFs during the same period, according to data from CryptoQuant.


Bitcoin Whales and Miners Offload Over $1B BTC in Past Two Weeks

Key Takeaways

  • Bitcoin whales and miners have offloaded over $1 billion worth of BTC in the past two weeks.

  • The shift in focus from bitcoin mining to the AI sector has contributed to increased selling activity.

  • Net outflows from U.S.-listed bitcoin ETFs and a lack of renewed demand from large holders have impacted BTC prices.


Bitcoin Whales: The Major Sellers


Increased Selling Activity

Long-term bitcoin holders and miners have been significant sellers of the cryptocurrency recently, with little indication of renewed buying interest. This trend is evident through a decrease in UTXO age bands, which indicates increased selling activity. Bitcoin whales, large holders of BTC, have sold over $1.2 billion worth of bitcoin in the past two weeks, likely using brokers instead of selling on the open market.


Impact on Bitcoin Prices

Traders have not been increasing their Bitcoin holdings, and the demand growth from large holders is still lacking strength. This lack of demand has contributed to a decline in BTC prices, which have fallen from $71,000 to just over $65,000 since June 5. The broad-based CoinDesk 20 (CD20), an index of the largest tokens, is up 1.2%, but BTC is down 0.6% in the past 24 hours.


The Shift to the AI Sector


Miners' New Focus

Market observers suggest that miners may be increasingly looking at the booming artificial intelligence (AI) sector instead of bitcoin. The diminishing mining rewards post-halving have prompted miners to seek alternative revenue channels. Powerful computing chips, essential for both AI and Bitcoin mining, make this shift feasible for miners.


Industry Insights

Lucy Hu, a senior analyst at Metalpha, shared that miners are diverting their focus to AI due to the fall in mining rewards. With AI firms demanding energy-intensive data centers, Bitcoin miners are gradually growing their revenue from sales to AI firms. This trend has led to increased selling of bitcoin rewards by miners.


Market Reactions and Predictions


ETF Outflows

The recent selling activity by Bitcoin whales and miners has coincided with significant net outflows from U.S.-listed bitcoin ETFs. Last week, these ETFs recorded net outflows of over $600 million, marking their worst performance since late April.


Future Price Predictions

Some traders have warned of a potential drop in BTC prices to as low as $60,000 in the absence of growth catalysts. The strong dollar, a flight away from riskier assets, and growth in traditional stock indices have all contributed to the current market conditions.


Conclusion

Bitcoin whales and miners have sold over $1 billion worth of BTC in the past two weeks, coinciding with significant net outflows from bitcoin ETFs. This selling activity is driven by a shift in focus from bitcoin mining to the AI sector and a lack of renewed buying interest from large holders. While the market remains volatile, the future direction of BTC prices will depend on various growth catalysts and market conditions.

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