Does Bitcoin’s sell-off reflect a lack of BTC wallet activity?

Takeaways from the conference:

• Bitcoin declined 2.8%, despite inflows of $1 billion into spot BTC ETFs. The market was digesting a massive wallet transfer from 2011.

• Bitcoin investors are most likely to be affected by US import tariffs, fiscal deficits and US trade barriers.

BitcoinBTCAfter a rejection of around $110,500 on Thursday,, traded at $107,400. Over two days, $1 billion was invested in spot Bitcoin Exchange-Traded Funds (ETFs). Now traders are scrambling to find a reason for the 2.8% decline, when BTC was hovering at $107,400 throughout the week prior.

Bitcoin’s recent decline may be due to profit-taking in anticipation of the weekend. Bitcoin, after all, was only 1,5% lower than its previous high. Investors continue to be wary of potential adverse effects from a global war of trade, especially since US President Donald Trump confirmed the Wednesday deadline on increasing import duties.

Dormant Bitcoin Wallet spooks market by moving 80.000 BTC

Some participants in the market claim investors became alarmed when a Bitcoin wallet that had been dormant for years moved coins. Onchain analysts believe that an old miner was responsible for Friday’s transaction. transfer of 80,009 BTC. It was reported that the entity held once over 200,000 BTC.

While concerns about a possible sale of coins are legitimate, it is not uncommon for large holders to move dormant coin. Moving so many coins at the same time would be counterproductive if an entity was planning to sell. That could cause attention to increase and have an impact on pricing. The likelihood that a seller will make an immediate purchase is decreased by this kind of activity.

In the event of an exchange, it is highly unlikely that one buyer will absorb all $4.3 billion worth of Bitcoins at once. For comparison, Strategy accumulated 17,075 BTC Still, large wallet transfers often trigger FUD (Fear, Uncertainty and Doubt), which can put short-term pressure on prices. It is important to note that large wallet transfers can trigger FUD, which in turn puts short term pressure on the price.

In May, addresses dating back to 2013 transferred More than 3,420 BTC. A wallet that was untouched by 14 years moved 2,000 BTC in November 2024. The same thing happened in March 2024 when 1,000 BTC was involved, as well as in November 2023. another 6,500 BTC. In the past, these isolated movements were not correlated to long-term trends reversals.

Related: Bitcoin to benefit from Trump’s ‘Big Beautiful Bill,’ analysts predict

Bitcoin’s current weakness is most likely due to macroeconomic concerns. Michael Hartnett is Chief Investment Strategist for Bank of America Global Research. advised investors to reduce exposure if the S&P 500 approaches 6,300.

Hartnett’s team noted that Bloomberg’s report. “bubble risks were rising” The US approval of “a $3.4 trillion fiscal package that cuts taxes.” A worsening outlook for fiscal policy may reduce demand. long-term government bondsBitcoin and other risky markets could be affected by this.

The Trump administration is also said to have begun sending notices The other nation “setting unilateral tariff rates” If no trade deal is reached by next Wednesday. Bitcoin’s failure to maintain the $110,000 mark is more likely due to this economic uncertainty than any crypto-related factors.

This is not a legal or investment advisory article. It is only intended as a general guide. This article is solely for informational purposes. It does not represent or reflect Cointelegraph’s views.