Bitcoin dips as dormant whale moves 16,843 BTC

Bitcoin experienced a slight retracement on Tuesday, pausing after achieving new all-time highs exceeding $123,000. This pullback coincided with the movement of $2 billion worth of BTC by a "OG" whale wallet, dormant for over a decade, to Galaxy Digital. This activity has fueled speculation regarding a potential significant sell-off.

The leading cryptocurrency has decreased by approximately 5% in the past 24 hours, trading near the $116,000 mark. This represents its most substantial decline in the last month. The decrease follows Bitcoin's considerable surge on Monday, primarily driven by optimism surrounding anticipated progress on US crypto legislation this week. Furthermore, increasing institutional demand for BTC remains a crucial factor.

Whale Awakens After 14 Years

A Bitcoin whale, inactive for over 14 years, transferred 16,843 BTC (approximately $2 billion) to Galaxy Digital through multiple transactions. These transfers were executed in seven separate transactions, commencing on Monday, with batch sizes ranging from 500 to 4,500 BTC. The final tranche of 3,160 BTC was sent on Tuesday.

This appears to be the first instance of a cash-out in this particular whale wallet's history. While some analysts initially proposed that these movements could be related to address management or security enhancements, the recent transfers to Galaxy Digital suggest that the whale may now be preparing to sell.

The decision by this whale to move assets to Galaxy Digital may not necessarily indicate a bearish sentiment. Instead, it could reflect a well-considered portfolio rebalancing strategy following Bitcoin's year-to-date rally of over 100%. Conversely, institutional inflows continue to surpass miner issuance.

On Monday alone, spot Bitcoin ETFs recorded $297 million in net inflows, bringing the cumulative net inflow to $52.66 billion. BlackRock's IBIT ETF led the inflow run with $394 million, while ARK's ARKB experienced $99.5 million in withdrawals.

Reports indicate that after observing the initial sales from the Bitcoin OG whale, another whale, identified as 0x960B, promptly closed their long position and initiated a short position on BTC. CoinGlass data reveals that approximately $160 million in long and short positions on Bitcoin's price have been liquidated in the past 24 hours, with $144 million (90%) of these liquidations representing long positions.

Crypto Week Begins with a Pullback

Bitcoin briefly reached a record high of $123,000 amid growing expectations that the US House of Representatives will approve key crypto legislation this week, dubbed "Crypto Week" by Republicans. These bills are viewed as a crucial step towards achieving long-awaited regulatory clarity.

Currently, BTC is trading between $116,000 and $117,000, with a 24-hour trading volume of $147 billion. The global digital asset market capitalization has declined by over 4% in the past day, settling at $3.66 trillion. Major altcoins, including Ethereum, Solana, and XRP, are also experiencing losses.

The meme crypto category appears to be the most significantly impacted by this recent pullback. Dogecoin and Shiba Inu prices have decreased by 8% and 6%, respectively, in the last 24 hours. The cumulative meme crypto market capitalization is down by 6%, standing at $64.5 billion.

Trump's meme coin has faced challenges in maintaining its momentum, despite celebrity endorsements and investor enthusiasm. The coin, which initially surged to $75 shortly after its launch, has declined by 6% to trade around $9.12. Recent news included crypto entrepreneur Justin Sun's announcement of a fresh $100 million investment into the Trump coin project. However, investor sentiment appears to be waning as speculative assets take a backseat to more established cryptocurrencies.