Bitcoin whales have been offloading a staggering $1.2 billion worth of Bitcoin in the past fortnight, indicating a lack of renewed demand from large holders. This significant sell-off is partly attributed to long-term investors and miners, who are shifting their focus towards the booming artificial intelligence (AI) sector. The trend is evident from the decrease in Unspent Transaction Outputs (UTXO) age bands, which signal increased selling activity.

CryptoQuant, a market analytics firm, reported that wallets associated with whales have sold over $1.2 billion worth of BTC in the past two weeks, likely through brokers rather than open market transactions. This trend is further exacerbated by miners pivoting to AI due to diminishing mining rewards post-halving. The decline in UTXO age bands indicates a reduction in Bitcoin holdings since prices surged above $70,000 in late May.

The market impact is significant, with Bitcoin prices falling from $71,000 to just over $65,000 since June 5. U.S.-listed Bitcoin ETFs recorded net outflows of over $600 million last week, their worst performance since late April. Some traders warn of a potential drop to as low as $60,000 in the absence of growth catalysts. As of the latest data, Bitcoin is down 0.6% in the past 24 hours.

The shift towards AI is a significant trend, with miners increasingly eyeing the sector instead of Bitcoin. Lucy Hu, senior analyst at crypto fund Metalpha, noted that the fall in mining rewards has prompted miners to seek other revenue channels. With AI firms demanding energy-intensive data centers, Bitcoin miners are gradually growing revenue from sales to AI firms.

Overall, the current market sentiment is bearish, with traders remaining cautious and Bitcoin prices consolidating lower. The future direction of Bitcoin prices will depend on the actions of these large holders and the demand growth from new investors.