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 off
bitcoins
Over the past two weeks, they have raised over $120 million, possibly through brokers rather than the public market.
In addition, traders are not adding to their positions. Since the price of Bitcoin broke $70,000 in October, whale demand has remained relatively weak.
Stablecoin liquidity continues to slow down, marking the slowest growth since January 2023.
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But what is causing these sudden sell-offs? Bitcoin miners may be looking for other profitable avenues, especially considering the boom in the artificial intelligence industry, leading to the selling off of Bitcoin. Apparently, the powerful computers used to mine 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 businesses,” said Lucy Hu, senior analyst at crypto fund Metalpha, in a Telegram message.
“The decrease in mining rewards is prompting miners to look for other channels to increase revenue.”
This shift, coupled with investors exiting risk investments in the face of a strong US dollar, has caused the price of Bitcoin to drop from $71,000 in October to $65,000 at the time of writing. Even spot Bitcoin ETFs continue to see net outflows.
Considering all these factors, some even predict that Bitcoin could fall to $60,000. The most pressing question now is – can Bitcoin regain its bullish momentum and hit new all-time highs?
