Bitcoin Drops 2% to $108,035 After 80,000 Dormant Coins Move

Bitcoin experienced a notable price drop to $108,035 following the unexpected movement of over 80,000 BTC, which had been dormant since 2011. These coins, initially acquired when BTC traded below $1, were transferred on July 4 in two significant transactions. This movement raised concerns about a potential sell-off, given the near-record prices at the time. The transfer was the largest shift of dormant Bitcoin in over a decade.

Despite the absence of direct transfers to centralized exchanges, the scale of the move caused a ripple effect across the market. Traders feared that such a massive stash entering circulation could trigger a correction. In response, long positions were unwound, and shorts piled in around the $110,000 resistance level, causing the price to slip nearly 2% within hours. However, the fact that the BTC was not sent to exchanges suggests an internal wallet reorganization rather than a coordinated sell-off.

The event highlighted the sensitivity of market sentiment, particularly when Bitcoin hovers near key psychological and technical resistance zones. While short-term sentiment faltered, longer-term bulls found encouragement in macro commentary from Sui Group Chief Economist Hong Hao. Speaking to Phoenix Finance, Hong projected that Bitcoin could hit fresh all-time highs by late 2025, driven by strong global liquidity and dovish monetary policies. He emphasized that Bitcoin remains highly responsive to changes in liquidity, and with central banks likely to loosen financial conditions into 2025, risk assets like BTC stand to benefit. He also pointed to improving sentiment in U.S. equities, suggesting broader risk-on appetite could return.

For now, analysts say this dual narrative—short-term caution vs. long-term optimism—will likely keep BTC consolidating as markets digest the implications of dormant coin activity. Technically, Bitcoin is clinging to support at $108,035 after failing to break above $110,413. Price action on the 2-hour chart shows consolidation above a key ascending trendline and just below the 50-period EMA ($108,250). A bearish divergence in the MACD histogram hints at weakening upside momentum. Unless BTC breaks below $107,325, the structure remains intact. A bounce from the current zone could reignite trade momentum.

In summary, the movement of 80,000 dormant BTC has sparked a shift in market sentiment, causing a temporary price drop. However, the lack of direct transfers to exchanges suggests an internal reorganization rather than a sell-off. Long-term bulls remain optimistic, citing strong global liquidity and dovish monetary policies. The next 48 hours will be crucial for Bitcoin's price prediction, as a break below the trendline support would invalidate the uptrend. If the $108K level holds, this remains a classic “buy-the-dip” scenario in a structurally bullish setup.