On-Chain Data Reveals Old Whale Transfers $61 Million Worth of Bitcoin to Coinbase

The cryptocurrency world is abuzz following unexpected activity by a long-dormant Bitcoin wallet on Friday. On-chain trackers Lookonchain and Arkham Intelligence spotted the old whale, inactive for six years, moving $61 million worth of Bitcoin to Coinbase.

This transaction comes amid weakening Bitcoin prices and the anticipated release of core inflation data, garnering significant attention among market participants.

Sleeping Whale Started Selling Huge BTC: Impact on Bitcoin Market

The recent transaction is part of a broader trend of long-term Bitcoin holders, often tagged old hands," dumping their holdings this year.

The wallet with the address 12EMDoUhaNCuWZeeT6ey61AkjKyzmjV2m3 reportedly moved 1,000 BTC worth $6.55 million at current prices to Coinbase Pro.According to Lookonchain, the investor bought the coins six years ago for only $6.68 million, representing a profit of $54.87 million.

This event isn't a one-time occurrence; similar occurrences have been witnessed over the past weeks. On Thursday, June 27, a Bitcoin miner's wallet woke up after 14 years of slumber, moving 50 Bitcoins worth $3.05 million to Binance.

Lookonchain report shows the miner earned these coins from mining activities on July 14, 2010.

This activity has raised questions about why these long-term holders started selling now. Analysts speculate these holders want to cash out as Bitcoin's price plays around all-time highs.

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

Market Pressures and Price Movement

Token sales by long-term holders aren't the only factor pushing Bitcoin's price down. Miners are selling their coins faster than usual.

These liquidations, alongside the German government's recent sales of 250 BTC, have exerted significant sell pressure on Bitcoin. As a result, Bitcoin has shed over 9% of its value in the past 30 days.

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

But in the meantime, price volatility might heighten as the market anticipates the release of the Personal Consumption Expenditure (PCE) price index. Notably, the PCE price index is a core inflation data point that could determine the Fed's next interest rate base point.

Meanwhile, according to Barrons' data, economists expect the numbers to show low inflation. Expert projections estimate 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 think Bitcoin could still fall to around $50,000. The founder's note says, 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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