Crypto Whales Panic as BTC Hits $64,000: Sells off Bitcoin Assets
The Crypto market is in chaos as a result of the recent downturn in market prices. In the last two weeks, long-term miners and holders of BTC have significantly sold off most of their Bitcoin assets.
These crypto Whales have shown little to no signs that they’re buying back the cryptocurrency. In other words, the market is not seeing any significant buying activity or demand.
In the last two weeks, CryptoQuant reported that over $1.2 billion worth of BTC was sold off. Additionally, traders are reluctant to increase their Bitcoin holdings and the large investors (whales) are not showing a strong demand growth.
According to the CryptoQuant UTXO age band data, traders have been selling off their holdings since BTC peaked above $70,000 in late May, showing a steady decline in holding.
Bitcoin Assets Profitability Via AI
A decrease in UTXO age often shows an increased Bitcoin activity, typically indicating selling pressure, while an increase suggests a rise in accumulation and holding.
Market analyst suggests that miners are leaving bitcoin for a more profitable opportunity in the artificial intelligence (AI) industry, leveraging their computational resources to capitalize on the AI boom. This means that they have to sell off their Bitcoin assets rewards and redirect their energy towards AI, where they can make more money by utilizing their existing infrastructure since both sectors rely heavily on powerful computing chips.
Lucy Hu, a senior analyst at Metalpha, states that one of the biggest trends since the Bitcoin Halving is miners transitioning from the cryptocurrency industry to the AI industry.
They’re finding opportunities with AI companies, which require powerful data centers, by selling off their computing resources to these companies.
The prices of Bitcoin has dropped from $71,000 to $65,000 since June 5, a shift away from risky investment and a rise in traditional stock prices. Additionally, U.S. listed ETFs that tracks Bitcoin have noted a massive outflow of over $600 million in the past weeks and this happens to be the largest withdrawal since April.
BTC price may drop to as low as $60,000 if there are no catalyst to drive growth. In the past 24 hours, Bitcoin has dropped by 0.6% to its current price.