Bitcoin Whales and Miners Dump Their Holdings as the Market Struggles to Regain Momentum

A Bitcoin whale deposited around $61 million worth of bitcoins to their Coinbase Pro account on Friday for liquidation. The wallet 12EMDoUhaNCuWZeeT6ey61AkjKyzmjV2m3 moved close to 1,000 bitcoins that laid dormant for six years.

A Bitcoin whale liquidated nearly 1,000 BTC, valued at over $61 million at current prices, on Friday, according to data from Arkham Intelligence.

 

Bitcoin whales are wallets that hold at least 1,000 BTC. They have been notably active in recent weeks, liquidating large amounts of bitcoin to book profits as the asset’s price has rallied.

 

On Thursday, a Satoshi-era Bitcoin wallet moved 50 BTC to Binance, out of the 500 BTC it received as mining rewards in 2010, when bitcoin was trading at just $0.05.

 

In Friday’s instance, the wallet acquired its bitcoins at a collective price of $66.6 million, marking a steep profit with this liquidation. Bitcoin holders typically move their assets to centralized exchanges (CEXs) for selling purposes.

 

Such selloffs make it harder for bitcoin’s price to rally again, and the asset’s value had dropped to slightly below $61,000 at press time. Bitcoin’s price had soared to highs of over $70,000 in early June.

 

Apart from whales, miners have also been selling their stockpiles due to the Bitcoin halving. As their mining rewards are slashed by half, with each block earning them 3.125 BTC from 6.25 BTC earlier, they are selling their holdings to book profits while bitcoin’s price is still high.

 

Some analysts expect it to drop to $50,000 before seeing upward momentum again.

 

Even the German government’s actions have kept bitcoin from rallying, as it has been liquidating large swaths of the asset and will sell 50,000 BTC by the time it is done.

 

Other macroeconomic factors include a strong US dollar and investors shifting to less risky investments, such as tech stocks.

 

The latter has prevented bitcoin from registering meaningful gains despite Personal Consumption Expenditure (CPE) data showing that inflation has cooled. Typically, lower inflation rates bode well for cryptocurrencies.

 

However, monetary policies have strengthened the dollar while reducing inflation rates, and a strong dollar is keeping crypto prices from rallying upwards.

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