Oracle's stock price plummeted again yesterday, triggering outflows from tech stocks and pushing the S&P 500 down for the fourth consecutive day. Bitcoin (BTC) briefly surged to around $90,000 last night, triggering short covering, but quickly fell back to $87,000. Ethereum (ETH) also briefly rose above $3,000 before crashing, with $540 million worth of positions liquidated in 24 hours. According to a report by K33 Research, long-term holders are continuing to sell Bitcoin.
Oracle shares plunge again as funds shift from growth stocks to value stocks.
Oracle, once a hot stock in the artificial intelligence sector, saw its shares fall 5.4% after the Financial Times reported that major investor Blue Owl Capital withdrew from its $10 billion data center project in Michigan, raising concerns about Oracle's debt and spending levels. Oracle subsequently denied the report, stating that the project is progressing.
As the year draws to a close, the large-cap tech stocks that have driven this bull market are losing their ability to support the market on their own, with investors questioning whether the high valuations and massive spending in artificial intelligence are justified.
Brian Mulberry, a portfolio manager at Zacks Investment Management, said :
"We are indeed seeing a clear shift of funds from large-cap growth stocks to large-cap value stocks, and I think people are actually adopting a more defensive strategy in preparation for what might happen next year. The real question is: who will benefit from these huge investments in artificial intelligence? "
Mulberry anticipates that the trend of funds shifting from overvalued stocks to "more reasonably valued industries" will continue until 2026. He believes this trend, coupled with uncertainty surrounding monetary policy, could lead to some volatility.
Bitcoin surged to $90,000 before plummeting, prompting long-term holders to cash out and exit the market.
Bitcoin (BTC) briefly surged to around $90,000 last night, triggering short liquidation, but quickly fell back to $87,000. Ethereum (ETH) also briefly rose above $3,000 before plummeting, with $540 million in positions liquidated within 24 hours, mostly in ETH.
According to a report by K33 Research, the number of Bitcoins that have remained untouched for at least two years since the beginning of 2023 has decreased by 1.6 million, worth approximately $140 billion. This indicates that long-term holders are continuously selling off their Bitcoin holdings.
Chris Newhouse, head of research at Ergonia, a company specializing in decentralized finance, said:
"The market is experiencing a slow decline characterized by sustained spot selling and insufficient buying liquidity, resulting in a gradual decline that is more difficult to reverse than a leveraged capitulation sell-off."
For most of the past year, these sell-offs were absorbed by surging demand from newly launched exchange-traded funds (ETFs) and cryptocurrency investment firms. But that demand has waned. ETF inflows have turned negative. Derivatives trading volumes have declined. Retail participation has also decreased. The same supply is now flowing into a weak market, with fewer active buyers.
The number of open contracts for Bitcoin options and perpetual futures remains well below pre-October crash levels, indicating that most traders are still taking a wait-and-see approach.
However, K33 remains confident about the future, believing that the selling pressure from long-term holders appears to be nearing saturation, with approximately 20% of the Bitcoin supply being reactivated over the past two years. He anticipates a decrease in OG selling in 2026, with supply increasing over the next two years as Bitcoin shifts towards net buyer demand amidst deeper institutional consolidation.
This article, titled "Bitcoin Surges to $90,000 Before Plunging, Long-Term Holders Continue to Sell BTC," first appeared on ABMedia .
