Key Takeaways:
A dormant Satoshi-era Bitcoin whale moved $9.6 billion after 14 years, triggering market correction concerns.
Whales may be reacting to U.S. regulatory developments, including the GENIUS Act.
Despite fears, Bitcoin ETFs continue to see strong inflows, totaling $522 million on Thursday.
U.S. Senate passes three major crypto bills, boosting regulatory clarity but raising compliance questions.
Whale Movements Shake Market as Crypto Bills Advance in U.S. Senate
A series of massive Bitcoin transfers by long-dormant whale wallets is raising alarm across the crypto market, just as the U.S. Senate passed three key cryptocurrency-related bills aimed at increasing regulatory oversight.
On-chain analysts tracked the movement of a Satoshi-era whale, who transferred approximately $9.6 billion worth of Bitcoin — the first time the wallet was active in 14 years. The transaction triggered fears of a potential sell-off, with analysts suggesting that regulatory pressures may be influencing whale behavior.
GENIUS Act Raises Concerns Among Large Holders
One potential trigger is the GENIUS Act, recently passed as part of broader crypto legislation. The bill requires stablecoin audits and could introduce more stringent compliance rules for crypto-related financial services. Financial analyst Jacob King warned that the legislation could "burst the biggest bubble and fraud in financial history," referring to Bitcoin itself.
The suggestion that whales may preemptively offload holdings in response to increasing oversight has fueled concerns of near-term volatility.
However, others downplay the threat. Analysts from Nansen argue that long-term whales are generally resilient to regulation and are likely unfazed by political developments.
ETF Inflows Remain Strong Despite Volatility
Despite the whale activity and regulatory uncertainty, U.S. spot Bitcoin ETFs have recorded 11 consecutive days of net inflows, drawing over $522 million in new capital on Thursday alone. This suggests that institutional demand for Bitcoin remains robust, even as market sentiment wavers.
ETF inflows are often seen as a barometer of longer-term confidence, indicating that traditional investors may be looking past short-term volatility tied to whale movements or government actions.
U.S. Senate Clears Path for Crypto Oversight
Meanwhile, the U.S. Senate passed three major crypto bills this week, signaling growing momentum for comprehensive digital asset regulation. These bills aim to define clearer legal frameworks around stablecoins, exchange operations, and digital asset classification — all of which could reshape how institutions interact with crypto in the coming years.
While the legislation improves clarity, it also raises new questions around compliance, privacy, and decentralization — factors that may influence whale behavior and retail investor sentiment alike.
