Bitcoin’s Attempt to Reach $110,000 Hindered as Inactive Large Investors Transfer Billions in BTC
Bitcoin is facing difficulties in surpassing the $110,000 mark as reports emerge of dormant whales from 2011 moving billions of dollars worth of the cryptocurrency. The cryptocurrency market experienced a decline on Friday morning, with Bitcoin (BTC) dropping by 1.8% in the past 24 hours, trading at approximately $107,896, struggling to breach the $110,000 resistance level. Ethereum (ETH) also saw a decline of 3.8%, settling at $2,513, while Solana (SOL) and XRP (XRP) experienced losses of nearly 3%, declining to $148 and $2.20, respectively.
The total crypto market capitalization fell by 5.6% to $3.4 trillion, with leveraged liquidations amounting to $187.4 million, as reported by CoinGlass data. Bitcoin led the liquidations with over $43 million, followed closely by ETH with nearly $40 million, and altcoins trailing with approximately $26 million in losses. In terms of ETF flows, Bitcoin spot ETFs recorded a net inflow of $602 million on July 3, with no outflows reported among the twelve funds, while Spot Ethereum ETFs saw a $148 million inflow on the same day. However, Grayscale’s Ethereum Trust recorded an outflow of $5.4 million.
A notable trend in the market involves dormant Bitcoin holders, including early miners and anonymous wallets, reducing their exposure, while institutional buyers are increasing their holdings. Whale Alert data shows that around 60,000 BTC, valued at approximately $6.5 billion, were transferred from dormant wallets that had not been accessed in 14 years. These transfers were split into six batches of 10,000 BTC each, with four of the wallets belonging to a single entity holding at least 80,000 BTC. The destination of these funds remains unclear, but there is speculation that some may be headed to exchanges for selling.
Despite long-term holders decreasing their exposure, institutions such as ETFs, treasury firms, and corporations have been actively acquiring Bitcoin over the past year. These entities have collectively accumulated nearly 900,000 BTC, holding approximately 4.8 million coins, which accounts for nearly a quarter of Bitcoin’s circulating supply, according to Bloomberg citing data from 10x Research. Overall, the market seems to be undergoing a silent reshuffle as dormant whales transition their holdings while institutional demand remains strong.
In conclusion, the cryptocurrency market is witnessing fluctuations as dormant whales transfer billions of dollars worth of Bitcoin, impacting the overall market sentiment and dynamics. As institutional adoption and interest in cryptocurrencies continue to grow, the market is likely to experience further shifts in the coming days.
