Long Dormant Whale Sends $61M BTC to Coinbase, OnChain Data Shows

Experts ponder the possibility that these inactive investors could be planning to sell their holdings as prices approach all-time peaks or participating in derivative market trading for speculative purposes.

As a researcher studying the cryptocurrency market, I have observed that long-term investors selling their coins, combined with quicker liquidations among miners, and the German government’s decision to offload its Bitcoin holdings, have collectively contributed to a significant price drop of approximately 9% this month.

At the present moment, the price of a bitcoin transaction was approximately $61,550. However, it was unable to maintain prices above $62,000 on at least four occasions since Tuesday, as indicated by CoinDesk’s data.

Later on Friday, the volatility of prices could rise as the Federal Reserve’s preferred measure of inflation, the core Personal Consumption Expenditures (PCE) price index for May, is made public. According to Bloomberg, economists predict no change in the PCE price index and a slight 0.1% rise in the core PCE. As a result, the annual growth rates for both headline and core figures would amount to 2.6%.

As a researcher examining current economic trends, I would interpret a benign inflation print as a potential justification for the Federal Reserve to reduce interest rates this year. This could serve as a cushion for Bitcoin’s value, which is presently showing signs of a possible deeper decline toward $50,000, according to some market analysts.