Over the past two weeks, long-term Bitcoin holders and miners have emerged as the largest sellers of BTC. These groups show little sign of new demand, according to a report by on-chain analysis firm CryptoQuant.
CryptoQuant's monitoring of Bitcoin wallets revealed that whales, a term used to describe large holders of any token, have disposed of over $1.2 billion worth of BTC in the past two weeks. Sales were probably made through intermediaries rather than on the open market.
“Traders are still not increasing their Bitcoin holdings and demand growth from their large wallets (whales) is still not strong,” the report said. It is also emphasized that stablecoin liquidity continues to slow down and is growing at the slowest pace since November 2023.
Interestingly, these traders have been reducing their holdings since the BTC price rose above $70,000 in late May. This trend is also reflected in the decreasing Unspent Transaction Output (UTXO) age bands tracked by CryptoQuant.
UTXO, the unspent output from Bitcoin transactions, is created with every Bitcoin transaction. Traders use it to track buying and selling patterns in previous, current and future market cycles. A decline in the UTXO age typically indicates an increase in Bitcoin activity and implies further selling. Conversely, a rise indicates increased retention in the market.
*This is not investment advice.