According to Arkham Intelligence, 10,000 bitcoins worth nearly $600 million have been transferred to the Coinbase Prime wallet.

A wallet that “received 10,000 BTC from a known US government wallet two weeks ago…has just been sent to…a Coinbase Prime deposit wallet,” Arkham said in a post to X. Bitcoin Could Be Suffering From a New Sell-off, Drop Could Retest $55,000!

According to Arkham, about two weeks ago, a crypto wallet marked as belonging to the U.S. Department of Justice appeared to send $2 billion worth of confiscated Bitcoin to an unidentified wallet. The Bitcoin may be part of the approximately $2 billion worth of Bitcoin that the U.S. Department of Justice seized from the now-defunct Silk Road darknet marketplace.

According to Arkham, in April this year, a wallet holding more than 30,000 Bitcoins appeared to send a test transaction of 0.001 BTC to another wallet belonging to Coinbase Prime. In late 2023, a U.S. appeals court finalized the forfeiture of nearly 70,000 BTC and other cryptocurrencies associated with Silk Road.

Bitcoin price could head lower as crypto exchanges see 1 billion USDT withdrawals: IntoTheBlock

Cryptocurrency prices rebounded sharply from last week’s volatility as Bitcoin {BTC} bounced back above $60,000 after falling below $50,000 during the Aug. 5 crash. But further upside may be elusive — at least based on one indicator that’s signaling a near-term local top.

Crypto analysis firm IntoTheBlock noted that more than $1 billion of Tether's USDT stablecoin was withdrawn from cryptocurrency exchanges on Tuesday, the most in a single day since May. Grayscale predicts that if the United States avoids a recession, BTC will retest its all-time high by the end of 2024

IntoTheBlock analysts said: “In the recent case of withdrawals exceeding $1 billion, Bitcoin began to decline shortly afterwards, suggesting that investors may be taking a risk-averse stance and moving funds to safer environments, such as cold wallets, to cope with market volatility.

However, there are nuances in interpreting the data. While stablecoin deposits to exchanges are positive, indicating new funds arriving to buy assets, withdrawals are not always negative, as users may move funds to decentralized finance (DeFi) to earn yield. Notably, DefiLlama data shows that the yield for providing USDT liquidity in DeFi pools has been trending downward.

Bitcoin fell to $59,000 during Wednesday’s U.S. trading session, fully reversing yesterday’s surge to over $61,000, despite a reassuring U.S. CPI inflation report on Wednesday and expectations of a rate cut in September.

Seasonal trends are not conducive to cryptocurrency price increases in terms of scope. Data compiled by CoinGlass shows that August and September have had negative monthly returns for much of Bitcoin’s history.

Miles Deutscher, a well-regarded cryptocurrency analyst, noted that Bitcoin’s current price action is similar to last year’s. Then, BTC fell from the top of its range of $30,000 to $24,000 in a massive leverage shock in August and spent mostly sideways for two months before starting to rebound in October.

“Retail interest is fading fast, with apathy from existing market players and a lack of a clear narrative,” he said. “It feels eerily similar to August-October last year.”

BTC price drops by $3,000 despite positive CPI

According to data from Cointelegraph Markets Pro, BTC price action surged to around $62,000 following the release of the latest Consumer Price Index (CPI) data.

The result was lower than expected and was expected to boost risk assets and cryptocurrencies, but Bitcoin's reaction was short-lived.

After reaching $61,809 on Bitstamp, Bitcoin fell more than 3% against the U.S. dollar in just over an hour.

In response, popular trader Daan Crypto Trades, who had earlier warned of volatile BTC price action around the giant US data print, breathed a sigh of relief.

“CPI came out mostly as an estimate. Pretty good, but doubt this will ultimately move markets much,” he wrote in an article on X.

“Markets may do whatever they want anyway. At least no crazy upside or downside surprises are good.

The latest data from CME Group's FedWatch tool showed that markets continue to support a small rate cut by the Federal Reserve at its next meeting in September.

“With headline inflation falling, Fed rate cuts are on the way,” trading resource The Kobeissi Letter continued in its own X report.

"However, with the rate cuts in place, some categories of inflation will start to rise again."

Bitcoin Traders Eye $55,000 for Long-Term Entry

Looking at potential market entries, trader Roman said Bitcoin could easily drop another 10% from current levels.

He believes the market lacks the right volume to sustain higher prices.

“Look for prices to hit $58,000 or even $55,000 and then maybe go long,” he told X followers.

“My plan hasn’t changed in the past week. Don’t see strength to continue to rise here as we have bearish price action (low volatility + rising prices).

The price showed a cut through buying while a new resistance line was formed at $61,900.