Bitcoin News Today: Bitcoin Drops 5.4% as US Inflation Hits 2.7%

Bitcoin's recent price momentum has been disrupted following the latest US Consumer Price Index (CPI) release, which indicated an inflation rate of 2.7% in June. This inflation increase has impacted investor sentiment, causing Bitcoin to decline by approximately 5.4% from its peak of over $123,000, with its current price trading just above $116,000. The broader crypto market has also reacted to this news, with the global crypto market cap valuation dropping by nearly 7% in the past day due to renewed uncertainty about future interest rate policy.

While Bitcoin has shown a strong uptrend in recent weeks, the latest pullback has introduced short-term volatility that analysts are closely monitoring. A significant on-chain development involved the transfer of 10,000 BTC, valued at roughly $1.2 billion, from a dormant address that had not been active for over a decade. This transfer occurred on July 14 at 16:17 UTC, moving the coins from address ‘bc1q84…7ef6k’ to ‘bc1qmu….8v2p.’ These coins had not moved in over 10 years, suggesting they likely originated from early miners during Bitcoin’s earliest phases when the block reward was 50 BTC.

CryptoQuant analyst Carmelo Alemán shared insights into the large transaction, noting that such old unspent transaction outputs (UTXOs) often trigger concern about potential sell-offs. However, further analysis suggests a more neutral interpretation. The movement of old coins can occur for various reasons, including UTXO consolidation, wallet upgrades, or potential sales. Alemán explained that this transfer displayed characteristics consistent with consolidation for efficiency and security purposes. For example, the transaction used 16 different inputs, which can help reduce future transaction fees. Additionally, no corresponding inflow to centralized exchanges (CEXs) was detected, typically a key signal when holders intend to liquidate.

The analyst also pointed out that two small test transactions were sent to the receiving address before the full transfer. These included a 0.00089 BTC and a 1 BTC transaction, commonly used to verify wallet accessibility before moving a large sum. Interestingly, two hours after the initial transaction, the same destination wallet received another transfer of 10,009 BTC, bringing the total to more than 20,000 BTC moved in the span of a few hours.

While the transaction did not lead to immediate market selling, it has added to ongoing discussions about the role of long-term holders in Bitcoin’s supply dynamics. Large transfers from early addresses are rare and often interpreted as strategic reorganization of funds. Alemán noted that the absence of exchange-related activity makes it unlikely that the coins are being liquidated in the short term. However, he cautioned that such movements warrant continued monitoring, particularly if additional large transfers follow or if the recipient wallet later transacts with exchanges.