CoinDesk reports:
A dormant Bitcoin wallet transferred 1000 bitcoins to Coinbase after six years. These bitcoins were originally purchased for around $6.68 million and are now worth $61 million. These large holders in the cryptocurrency world are referred to as “whales” and have a significant impact on the market.
Reactivation of dormant Bitcoin wallet
The reactivation of long-inactive Bitcoin wallets is becoming increasingly noticeable. Just a day ago, a wallet related to Bitcoin miners transferred 50 bitcoins to Binance after being idle for 14 years. These transactions may indicate long-term holders cashing out at record prices or engaging in speculative trading. Visit COINTURK FINANCE for the latest financial and business news.
The sale by long-term holders led to a 9% drop in the price of Bitcoin. The rapid sell-off by miners and the decision by the German government to sell its holdings of Bitcoin also contributed to this decline. Large transactions bring enormous downward pressure, leading to highly volatile markets.
Current price situation
At the time of writing, the trading price of Bitcoin is $61,550, unable to maintain the increase above $62,000 achieved yesterday. This inability to sustain higher prices has occurred several times recently. Market participants are closely watching the upcoming economic data.
The May core personal consumption expenditure price index, released on Friday, may further influence the market conditions. Economists expect the PCE price index to remain unchanged, with the core PCE expected to rise slightly by 0.1%. This data may support the argument for the Federal Reserve to lower interest rates.
Potential scenarios for Bitcoin
As analysts have predicted, positive inflation data may support Bitcoin prices and prevent them from further falling to $50,000. The interaction between macroeconomic indicators and cryptocurrency market dynamics is expected to have a more significant impact on price trends.
Key points
The reactivation of old Bitcoin wallets can lead to significant market fluctuations. Large sales by long-term holders often lead to price fluctuations. Upcoming economic data, such as the PCE price index, are crucial for market forecasts. Political factors, such as the US election, may influence the cryptocurrency market.
Finally, it is important to note that this year is an election year in the US, adding another layer of uncertainty and potential impact to Bitcoin and other cryptocurrencies.
You can follow our news on Telegram, Twitter (X), and Coinmarketcap. Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware of the high volatility of cryptocurrencies and should conduct their own research.
