Recently, the cryptocurrency market witnessed an intriguing event when a long-dormant whale wallet suddenly became active after six years. The whale wallet, known as 12EMDoUhaNCuWZeeT6ey61AkjKyzmjV2m3, made a significant move by transferring 1,000 BTC (equivalent to over $61 million) to Coinbase Pro. Notably, these bitcoins were acquired six years ago for a fraction of their current value.
Whale wallets are characterized by holding 1000 BTC or more, indicating substantial market influence. The resurgence of dormant bitcoin wallets, like the aforementioned case, has become more prevalent this quarter. Another notable incident involved a wallet associated with a bitcoin miner that came to life after 14 years, transferring 50 BTC to Binance.
Analysts suggest that these sudden movements from long-time holders could be due to various reasons, such as capitalizing on the current high prices or engaging in speculative trading activities. Additionally, the recent increase in selling pressure from miners and external entities, like the German government’s divestment of coin holdings, has contributed to the recent price decline in Bitcoin.
Despite several attempts to surpass the $62,000 mark, Bitcoin’s price has faced resistance and is currently fluctuating around $61,550. The market anticipates potential volatility following the release of the core Personal Consumption Expenditures (PCE) price index for May by the Federal Reserve. Any significant changes in inflation data could impact Bitcoin’s price trajectory.
Market observers suggest that a muted inflation report might support the case for future Fed rate cuts, potentially stabilizing Bitcoin’s price and preventing a significant drop below $50,000. However, the cryptocurrency market remains dynamic and susceptible to various external factors.