Bitcoin appears to have hit an air pocket. Whales have disposed of their digital assets massively over the last two weeks. The exodus of digital assets, which totals over $1.2 billion, according to CryptoQuant has caused concern among many investors.
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Markets may follow where the Whales move
This sudden decline in value is still unclear, but many analysts attribute it to an array of factors. According to one theory, miners – the powerful machines which secure the Bitcoin network in exchange for new coins – have shifted their priorities.
#Bitcoin Whales who have held long-term positions sold $1.25 billion over the past two weeks.
ETFs have negative netflows with outflows of $460M during the same period.
Brokers may have to deposit if this sell-side liquidity of $1.6 billion is not bought OTC. $BTC Market impact of exchanges pic.twitter.com/oYeKsRqKeF
— Ki Young Ju (@ki_young_ju) June 18, 2024
The booming AI sector could be a more lucrative investment for miners, who may decide to cash in their cryptocurrency earnings and invest them into the computing future.
Lucy Hu is a senior researcher at the crypto fund Metalpha. She believes that AI’s allure cannot be denied. Mining rigs have the processing power required for AI. Miners seem to be diversifying their income streams in a strategic way.
The exodus from the Bitcoin eco-system could be a cascade effect. The miners selling their rewards increases the supply of BTC, which could drive the price lower.
The decline of the sand-sized population is also in line with this. “UTXO age” – a metric used to track buying and selling patterns. Drop in UTXO The age of the investor indicates an increase in selling, which isn’t a good sign for those hoping to catch up with Bitcoin.
Bitcoin on the Beach as Traditional Markets beckon
The broader sentiment of the market is also fueling the fire. Recently, the recent strength of the US dollar A general flight toward “safer” Assets like traditional stocks are putting a damper to riskier investments such as Bitcoin.
Risk aversion also reflects in the net outflows of over $600 million from US-listed Bitcoin ETFs – the worst performance since late April.
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What is the current state of Bitcoin?
BTC has seen a gradual decline due to these three factors. Bitcoin’s price has fallen from $71,000 a couple of weeks ago to just under $6,000. dipped A bit over $65,000. Analysts warn that the market could plummet to $60,000 or lower if negative sentiment continues.
A ton of Bitcoin is being unloaded by whales. Does this look like a massive discount on Bitcoin or an indication that Bitcoin is about to face some tough times? Investors want to know if now is the time to invest or sell.
Featured picture from Getty Images. Chart by TradingView
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Source: www.newsbtc.com