Bitcoin whales and miners have recently sold a significant amount of their holdings, totaling $1.2 billion. This indicates that there is a trend of increased profit-taking among these major players in the cryptocurrency market. This selling activity has been particularly noticeable since Bitcoin surpassed the $70,000 mark at the end of May.
Interestingly, it seems that these whales and miners are choosing to sell their Bitcoin reserves to brokers rather than through exchanges. Data from CryptoQuant suggests that Bitcoin UTXO age band sizes are decreasing, which is usually associated with a higher volume of BTC selling. However, these funds are not necessarily moving to exchanges, indicating a different method of liquidation.
For those unfamiliar with the term, UTXO stands for unspent transaction output, which is a crucial part of every Bitcoin transaction. A decrease in the age of UTXOs suggests increased activity related to selling Bitcoin. Additionally, on-chain analysis reveals that stablecoin liquidity is decreasing, signaling that holders are shifting out of their BTC positions by trading for fiat-pegged assets.
The recent halving event has also played a role in miners offloading their BTC reserves. With block rewards halving, miners are exploring other avenues for higher profits. Some miners are now providing their services to AI companies, as the processing power required for AI-related tasks is similar to what mining rigs offer. This shift has led to miners selling off their assets in large quantities through brokers.
Moreover, macroeconomic factors are contributing to the selling pressure on Bitcoin holders. The strong performance of the US dollar and stable interest rates are prompting many investors to move away from riskier assets like BTC and towards traditional markets. Bitcoin ETFs listed in the US have experienced significant outflows, with approximately $600 million withdrawn last week.
Despite facing substantial resistance in its upward movement, Bitcoin has struggled to break through key price levels. The drop from over $70,000 to below $65,000 has forced many holders to liquidate their holdings. Some traders are predicting that the price of Bitcoin could drop even further to $60,000 or lower in the near future.
In a recent post on social media platform X, CryptoQuant’s CEO highlighted that long-term holder whales have sold $1.2 billion worth of Bitcoin in the past two weeks, likely through brokers. He warned that if this substantial sell-side liquidity is not absorbed through over-the-counter (OTC) transactions, brokers may deposit BTC on exchanges, potentially impacting the market even further.