Sleeping Whales Started Selling Huge BTC: Impact on Bitcoin Market

The cryptocurrency world is abuzz following unexpected activity by a long-dormant Bitcoin wallet on Friday. On-chain trackers Lookonchain and Arkham

A long-dormant Bitcoin wallet, reportedly inactive for six years, has recently made a move, capturing the attention of on-chain trackers. This activity is occurring amidst weakening Bitcoin prices and the anticipation surrounding core inflation data.

According to on-chain trackers Lookonchain and Arkham Intelligence, an old whale moved 1,000 BTC, valued at $6.55 million at current prices, from a wallet address (12EMDoUhaNCuWZeeT6ey61AkjKyzmjV2m3) to Coinbase Pro on Friday, July 1.

The trackers also noted that the Bitcoin was purchased by the investor in 2017 for around $6.68 million, indicating a profit of $54.87 million from this sale.

This event is not an isolated occurrence, with several similar instances being observed in recent weeks. On Thursday, June 27, a Bitcoin miner's wallet, which had remained dormant for 14 years, suddenly became active, transferring 50 Bitcoins, currently valued at $3.05 million, to Binance.

According to Lookonchain's report, the miner obtained these coins from mining activities on July 14, 2010.

These activities have prompted speculation among analysts, who suggest that these long-term Bitcoin holders may be cashing out their holdings as the cryptocurrency trades at all-time highs.

Some believe that these old hands might be planning to venture into speculative trading in the derivatives market. Either way, these large selloffs could negatively impact the price of Bitcoin.

In addition to these long-term holder selloffs, other factors are also contributing to a sell-off in the BTC market. For instance, miners are selling their coins at a faster rate than usual.

These selloffs, coupled with the recent sale of 250 BTC by the German government, have placed significant sell pressure on Bitcoin, causing its price to drop by over 9% in the past 30 days.

Moreover, Bitcoin's price has struggled to stay above $62,000 over the past few days, hovering around the $61,500 mark.

However, price volatility is expected to heighten as the market anticipates the release of the Personal Consumption Expenditure (PCE) price index. This core inflation data point will play a role in determining the Fed’s next interest rate base point.

According to data from Barrons, economists expect the numbers to show low inflation. Experts' projections indicate no significant change in the PCE price index and a 0.1% marginal increase in the core PCE. This result will lead to 2.6% annual increases in the core and headline figures.

If the inflation report is favorable, it could support the case for Fed rate cuts this year. This might help boost investor sentiment, leading to a price uptick for Bitcoin.

However, some observers from 10x Research still believe that Bitcoin could still fall to around $50,000. According to a note from the founder, “Technically, bitcoin appears to follow a double top formation, whereas the support level is being tested. This chart formation should be our base case unless it becomes invalidated. This formation could easily see a drop to $50,000 – if not $45,000.”

Overall, these are critical times for Bitcoin and the broader crypto market, and with the future still uncertain, investors must stay cautious.

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