CryptoQuant’s recent report shows that large holders, known as “whales,” have been selling their tokens over the past two weeks.
Crypto whales have sold Bitcoin
Over the past two weeks, whales have raised over $120 million, possibly through brokers rather than the public market. Additionally, traders have not been increasing their holdings, and demand for whales has remained relatively weak since Bitcoin prices surpassed $70,000.
Stablecoin liquidity continues to slow, marking the slowest growth since January 2023.
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But what has caused these sudden sell-offs? Bitcoin miners may be looking for other profitable opportunities, especially considering the boom in the artificial intelligence industry, leading to the sell-off of Bitcoin. Apparently, the powerful computers used for mining cryptocurrencies can also perform AI tasks, meaning some miners may benefit from this trend.
“One of the biggest trends since Bitcoin’s halving this year is miners increasingly turning to AI business,” said Lucy Hu, senior analyst at the cryptocurrency fund Metalpha, in a Telegram message.
“The decrease in mining rewards has prompted miners to look for other channels to increase revenue.”
This shift, along with investors exiting risk investments as the US dollar strengthens, has led to Bitcoin prices dropping from $71,000 to $65,000 at the time of writing this article. Even spot Bitcoin ETFs continue to see net outflows.
Considering all these factors, some even predict that Bitcoin could drop to $60,000. The most important question now is whether Bitcoin can regain its bullish trajectory and set new all-time highs?
