Bitcoin Whales Show Bullish Sentiment as US Consumer Price Index Data Release Nears

Bitcoin Whales Show Bullish Sentiment as US Consumer Price Index Data Release Nears

According to recent data from IntoTheBlock, the number of Bitcoin whale transactions (those valued at $100,000 or more) surged significantly between September 7 and 9, rising from 12,560 to 16,240. This uptick in whale activity followed a sharp decline in Bitcoin’s price, which fell below the $54,000 mark amid increased selling pressure.

Over the past week, Bitcoin whales have moved more than $70 billion worth of the cryptocurrency, according to ITB’s data. While heightened whale activity typically results in considerable price swings, it appears that in this instance, large holders are accumulating Bitcoin amid rising inflows.

Data shows that large whale inflows dropped dramatically on September 7, falling from 11,570 BTC to just 1,100 BTC, and declining even further to 469 BTC the next day — signaling a significant selloff. However, by September 9, inflows had rebounded to 1,580 BTC, suggesting that the whale selloff may have come to an end.

Not only are whales accumulating, but retail investors also seem to be following suit. IntoTheBlock reports that Bitcoin saw a net outflow of over 6,000 BTC from exchanges just yesterday.

Currently, Bitcoin is up by 3.5%, trading at $56,950, after briefly touching a local high of $58,000 earlier today. It has since been consolidating around the $57,000 range, and investor sentiment remains optimistic as the release of U.S. Consumer Price Index (CPI) data approaches.

The inflation rate for August is expected to come in at 2.6%, and if it meets or falls below this expectation, economists anticipate a 50 basis point interest rate cut could follow this week. Such a move would likely create bullish momentum across financial markets, including both cryptocurrencies and stocks.