Bitcoin Whale Wallet Moves 1,000 BTC to Coinbase as Prices Hover Near $62,000

Bitcoin Whale Wallet Moves 1,000 BTC to Coinbase as Prices Hover Near $62,000

In a surprising turn of events, a long-dormant whale wallet that had been inactive for six years suddenly came to life early Friday, transferring Bitcoin (BTC) to Coinbase as the leading cryptocurrency saw a decline from its peak above $62,000.

The crypto wallet, identified as 12EMDoUhaNCuWZeeT6ey61AkjKyzmjV2m3, moved a significant 1,000 BTC, valued at over $61 million, to Coinbase Pro, as per data from Lookonchain and Arkham Intelligence. Remarkably, these coins were originally acquired six years ago for just $6.68 million. A whale is defined as a wallet holding 1,000 BTC or more.

This quarter has seen a notable uptick in activity from dormant Bitcoin wallets, with many transferring their holdings to exchanges. On Thursday, a wallet associated with a Bitcoin miner became active for the first time in 14 years, sending 50 BTC to Binance.

Analysts suggest that these long-term holders may be looking to cash out while prices remain near record highs or engage in speculative activities within the derivatives market.

The selling pressure from long-term holders, combined with accelerated liquidations by miners and the German government’s divestment of coin holdings, has contributed to a nearly 9% decline in Bitcoin prices this month.

At the time of writing, Bitcoin is trading at $61,550, struggling to sustain gains above the $62,000 mark, which it has failed to hold at least four times since Tuesday, according to CoinDesk data.

Price volatility is expected to increase later on Friday with the release of the Fed’s preferred inflation gauge, the core Personal Consumption Expenditures (PCE) price index for May. Bloomberg reports that economists are predicting no change in the PCE price index and a slight 0.1% increase in the core PCE, leading to annual gains of 2.6% in both the headline and core figures.

A favorable inflation report could strengthen the argument for Fed rate cuts this year, potentially providing support for BTC. However, some observers believe that Bitcoin may still be poised for a deeper decline toward $50,000.