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Whales Dump Over $1 Billion In Bitcoin: Fire Sale Or Foreshadowing?

Source Newsbtc

Bitcoin seems to be hitting an air pocket. Over the past two weeks, whales have been shedding their digital assets in large amounts. This exodus, totaling over $1.2 billion according to CryptoQuant, has been a cause for concern for many landlocked investor.

Where The Whales Go, The Market May Follow

The reasons for this sudden sell-off remain murky, but analysts point to a confluence of factors. One theory suggests a shift in priorities for miners, the brawny machines that secure the Bitcoin network and earn rewards in the form of new coins.

#Bitcoin long-term holder whales sold $1.2B in the past 2 weeks, likely through brokers.

ETF netflows are negative with $460M outflows in the same period.

If this ~$1.6B in sell-side liquidity isn’t bought OTC, brokers may deposit $BTC to exchanges, impacting the market. pic.twitter.com/oYeKsRqKeF

— Ki Young Ju (@ki_young_ju) June 18, 2024

With the booming artificial intelligence (AI) sector offering a potentially more lucrative goldmine, miners might be cashing out their crypto rewards to invest in the future of computing.

The allure of AI is undeniable, shared Lucy Hu, a senior analyst at crypto fund Metalpha. The sheer processing power needed for AI development aligns perfectly with the capabilities of mining rigs. It seems miners are strategically diversifying their revenue streams.

This potential exodus of miners from the Bitcoin ecosystem could have a domino effect. As miners sell their rewards, it increases the overall supply of BTC in circulation, potentially driving the price down.

This aligns with the observed decline in “UTXO age” – a metric used to track buying and selling patterns. A drop in UTXO age indicates increased selling activity, and that’s not a comforting sign for investors hoping to ride the Bitcoin wave.

Traditional Markets Beckon, Leaving Bitcoin On The Beach

Adding fuel to the fire is the broader market sentiment. The recent strength of the US dollar and a general flight towards “safer” assets like traditional stocks have put a damper on riskier investments like Bitcoin.

This risk aversion is further reflected in the net outflows of over $600 million from US-listed Bitcoin ETFs – the worst performance since late April.

Is This A Bitcoin Bust, Or A Temporary Hiccup?

The combined effect of these factors has been a steady decline in BTC’s price. From a lofty perch of $71,000 just a few weeks ago, Bitcoin has dipped to a little over $65,000. Some analysts warn of a potential freefall to as low as $60,000 if the tide of negative sentiment continues to flow.

Whales are unloading a ton of Bitcoin. Is this a fire sale, a big discount to buy Bitcoin, or a warning sign that things are about to get rough for Bitcoin? Investors are waiting to see if this is a good time to buy or if they should get out before the price drops even more.

Featured image from Getty Images, chart from TradingView

Disclaimer: For information purposes only. Past performance is not indicative of future results.

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Bitcoin briefly loses 2025 gains as crypto plunges over the weekend.Bitcoin experienced a sharp decline this weekend, briefly erasing its 2025 gains and dipping below its year-opening value of $93,507. The cryptocurrency fell to a low of $93,029 on Sunday, representing a 25% drop from its all-time high in October. Although it has rebounded slightly to around $94,209, the pressures on the market remain significant. The downturn occurred despite the reopening of the U.S. government on Thursday, which many had hoped would provide essential support for crypto markets. This year initially appeared promising for cryptocurrencies, particularly after the inauguration of President Donald Trump, who has established the most pro-crypto administration thus far. However, ongoing political tensions—including Trump's tariff strategies and the recent government shutdown, lasting a historic 43 days—have contributed to several rapid price pullbacks for Bitcoin throughout the year. Market dynamics are also being influenced by Bitcoin whales—investors holding large amounts of Bitcoin—who have been offloading portions of their assets, consequently stalling price rallies even as positive regulatory developments emerge. Despite these sell-offs, analysts from Glassnode argue that this behavior aligns with typical patterns seen among long-term investors during the concluding stages of bull markets, suggesting it is not indicative of a mass exodus. Notably, Bitcoin is not alone in its struggles, as Ethereum and Solana have also recorded declines of 7.95% and 28.3%, respectively, since the start of the year, while numerous altcoins have faced even steeper losses. Looking ahead, questions linger regarding the viability of the four-year cycle thesis, particularly given the increasing institutional support and regulatory frameworks now in place in the crypto landscape. Matt Hougan, chief investment officer at Bitwise, remains optimistic, suggesting a potential Bitcoin resurgence in 2026 driven by the “debasement trade” thesis and a broader trend toward increased adoption of stablecoins, tokenization, and decentralized finance. Hougan emphasized the soundness of the underlying fundamentals, pointing to a positive outlook for the sector in the longer term.

Author Mitrade

Nov 17, 2025

Bitcoin experienced a sharp decline this weekend, briefly erasing its 2025 gains and dipping below its year-opening value of $93,507. The cryptocurrency fell to a low of $93,029 on Sunday, representing a 25% drop from its all-time high in October. Although it has rebounded slightly to around $94,209, the pressures on the market remain significant. The downturn occurred despite the reopening of the U.S. government on Thursday, which many had hoped would provide essential support for crypto markets. This year initially appeared promising for cryptocurrencies, particularly after the inauguration of President Donald Trump, who has established the most pro-crypto administration thus far. However, ongoing political tensions—including Trump's tariff strategies and the recent government shutdown, lasting a historic 43 days—have contributed to several rapid price pullbacks for Bitcoin throughout the year. Market dynamics are also being influenced by Bitcoin whales—investors holding large amounts of Bitcoin—who have been offloading portions of their assets, consequently stalling price rallies even as positive regulatory developments emerge. Despite these sell-offs, analysts from Glassnode argue that this behavior aligns with typical patterns seen among long-term investors during the concluding stages of bull markets, suggesting it is not indicative of a mass exodus. Notably, Bitcoin is not alone in its struggles, as Ethereum and Solana have also recorded declines of 7.95% and 28.3%, respectively, since the start of the year, while numerous altcoins have faced even steeper losses. Looking ahead, questions linger regarding the viability of the four-year cycle thesis, particularly given the increasing institutional support and regulatory frameworks now in place in the crypto landscape. Matt Hougan, chief investment officer at Bitwise, remains optimistic, suggesting a potential Bitcoin resurgence in 2026 driven by the “debasement trade” thesis and a broader trend toward increased adoption of stablecoins, tokenization, and decentralized finance. Hougan emphasized the soundness of the underlying fundamentals, pointing to a positive outlook for the sector in the longer term.

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