Bitcoin Price at Risk: Dormant Wallet Moves 25,000 BTC Ahead of Options Expiry and PCE Inflation Data

• This week marked a significant movement in the cryptocurrency market as a dormant Bitcoin wallet activated, moving 25,000 BTC, sparking fears of a market downturn.
• Incredible volatility was noted as dormant wallet addresses moved a cumulative total of 45,000 bitcoins this week alone.
• Looking ahead, Bitcoin and various altcoins face a wave of selling pressure due to the upcoming options expiry and the release of the PCE inflation data next week.

Will Bitcoin crash to $57k as dormant wallets stir, options expiry looms, and PCE inflation data approaches? Get the latest insights in our in-depth analysis.

Dormant Wallet Activity and Its Market Implications

This week’s market surprised many as a previously inactive Bitcoin wallet took significant action, transferring 25,000 BTC across six transactions. On-chain analysts observed heightened activity from dormant wallets, moving upwards of 45,000 BTC in a matter of days, fueling concerns about potential market instability.

Massive Movement from a Single Wallet

Bitcoin Spend Output Age Bands data reveals that a single wallet, holding BTC aged between 3 to 5 years, moved over $1.6 billion worth of Bitcoin. The substantial transfer has market watchers speculating about a possible sell-off due to waning optimism for a price increase. CryptoQuant confirmed that massive transfers totalling 25,000 BTC were executed today, raising alarms about Bitcoin’s short-term future.

Why There’s Increased Risk of a BTC Price Drop

Next week is pivotal for the cryptocurrency market, with Bitcoin and altcoins expected to experience selling pressure. Bitcoin has already dropped by 10% within a month, and altcoins have experienced even sharper declines of 20-30%. Per Deribit, over 104,000 BTC options, valued at $6.72 billion, are set to expire on June 28, with a put-call ratio of 0.52 and a max pain point of $57,000. This substantial expiry suggests continued selling pressure.

Events Impacting Bitcoin’s Trajectory

Traders are bracing for a volatile week, as the U.S. GDP growth rate data is scheduled for release on Thursday, followed by the Fed’s preferred inflation measure, the PCE inflation data, on Friday. These important data points coincide with the massive options expiry, heightening the risk of significant price movements. High volatility and selling pressure could potentially pull Bitcoin’s price below $60,000, with a further drop to $57,000 being plausible.

Additional Factors Contributing to Selling Pressure

Moreover, Bitcoin faces increased selling pressure due to notable ETF outflows, which exceeded $500 million this past week. Concurrently, the German government has been transferring considerable amounts of BTC from its holdings to exchanges, adding further downward pressure on the market.

Conclusion

In summary, the crypto market is on high alert due to significant movements from dormant wallet addresses, massive options expiries, and upcoming critical economic data releases. Investors should prepare for high volatility and potential price declines, as the market may witness Bitcoin dipping to $57,000 or lower. The upcoming week will be a crucial test for market resilience and investor confidence.