Bitcoin Bounces Back as Massive Whale Transfer Sparks Speculation

Bitcoin Bounces Back as Massive Whale Transfer Sparks Speculation
Bitcoin Bounces Back as Massive Whale Transfer Sparks Speculation

Bitcoin, the world’s biggest cryptocurrency, recovered some lost ground on June 12 after falling close to the $66,000 mark the previous day. As of the time of writing, the price has rebounded to a 24-hour peak of $70,000 following the release of new inflation data in the United States. 

Experts think this could set the stage for a major bull run in Bitcoin and other top cryptos.

Some big news also hit the Bitcoin world when someone moved 8,000 BTC worth over $537 million to a centralized exchange wallet. The huge stash of Bitcoin has been sitting untouched in a wallet since December 2018. 

Image via Arkham

Back then, the mystery owner bought the 8,000 coins for just $30 million total, or around $3,800 per BTC. That means if they sold the Bitcoin holding today, they would make a massive profit of over half a billion dollars!

The sudden move of such a large amount of Bitcoin caught the attention of the crypto community. Often, transfers of crypto from wallets to exchanges can mean the owner wants to sell. This can sometimes cause prices to go down if a big “whale” floods the market with coins they have been holding for a long time.

Bitcoin ETFs Record Persistent Outflows

In other related news, Bitcoin ETFs recorded an outflow of $154 million on June 12, according to Lookonchain data.

Image via X (Lookonchain)

This would make it the third straight day of outflows for the asset class, as data from Farside Investors shows that Bitcoin ETFs recorded outflows of about $265 million between June 10 and 11.

Image via Farside Investors

That said, outflows on June 12 occurred just before the release of the U.S. Consumer Price Index (CPI) data, reflecting a cautious sentiment among investors.

ARK21Shares’s ARKB fund saw the largest outflow, with 840 Bitcoin worth $58 million withdrawn. This reduced ARKB’s holdings to 48,199 Bitcoin, currently valued at $3.36 billion. Grayscale’s GBTC also experienced a notable outflow of 580 Bitcoin, worth $40.5 million, bringing its total holdings down to 283,966 BTC.

However, not all Bitcoin ETFs were affected by the outflows. BlackRock’s IBTC and several other major funds reported no withdrawals during this period. This suggests that while some investors may be taking a cautious approach, others remain confident in the long-term prospects of Bitcoin.

With the CPI now out of the way, we can expect outflows to thin out over the coming days and overall sentiment to improve.

Is Bitcoin Rebound Here to Stay?

On the technical analysis front, BTC has quelled the recent bearish pressure that sent the entire crypto market spiraling, leaving millions of dollars in liquidation in its wake. 

At the moment, the $67,500 support zone appears to be holding up well and should help the benchmark cryptocurrency regain a footing above the $70,000 mark. 

BTC/USD 4-Hour Chart

However, losing this handle could see the cryptocurrency resume its downward spiral down to the $64,000 support mark. But as mentioned earlier, the recently released CPI information has lifted some of the uncertainty in the market that sparked the bearish mood in the first place. It’ll be interesting to see how it all goes for Bitcoin in the coming days.

BTC Statistics Data

BTC Current Price: $67,500

Market Cap: $1.3T

BTC Circulating Supply: 19.7M

BTC Total Supply: 21M

Market Ranking: #1

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