Some market participants were shocked by the transfer of Bitcoin from a long-dormant Bitcoin wallet that had not moved for years. Onchain analysts speculate that the mastermind behind the transfer of 80,009 Bitcoin on Friday was a miner from 2011. This entity reportedly held over 200,000 Bitcoin.
While concerns about potential selling are not unfounded, it is not uncommon for large holders to transfer idle tokens. If the entity intends to sell, transferring such a large number of addresses at once would be counterproductive, as it may draw attention and affect prices. In fact, such a transfer reduces the likelihood of an immediate sale.
Even in the case of over-the-counter trading, it seems unlikely that a buyer would absorb $4.3 billion worth of Bitcoin in one go. In comparison, Strategy accumulated 17,075 Bitcoin throughout June. However, large wallet transfers often trigger fear, uncertainty, and doubt (FUD), which can exert short-term pressure on prices.
In May, an address dating back to 2013 transferred over 3,420 BTC. In November 2024, another wallet transferred 2,000 BTC that had not moved for 14 years.
Similar events occurred in March 2024 when 1,000 BTC were transferred, and in November 2023 when 6,500 BTC were transferred. Historically, these isolated fluctuations have been unrelated to long-term trend reversals.
The most likely reason for Bitcoin's recent weakness reflects escalating macroeconomic concerns. It has been reported that Michael Hartnett, chief investment strategist at Bank of America Global Research, advised investors to reduce their holdings if the S&P 500 approaches 6,300 points.
According to Bloomberg, Hartnett's team observed that 'bubble risks are rising' after the U.S. government approved a '3.4 trillion dollar tax cut fiscal plan.' Deteriorating fiscal prospects could suppress demand for long-term government bonds, which in turn may put pressure on broader risk markets, including Bitcoin.
Meanwhile, it has been reported that the Trump administration has begun notifying other countries to 'set unilateral tariff rates' if a trade agreement is not reached before the deadline next Wednesday. This economic uncertainty, rather than any specific cryptocurrency-related factors, provides a more convincing explanation for Bitcoin's inability to hold the $110,000 threshold.
