• Arkham Intelligence data shows that a wallet associated with the US government transferred 10,000 BTC, worth $593.5 million, to Coinbase Prime on Wednesday. 
  • Bitcoin Spot ETFs recorded a mild outflow of $81.40 million on Wednesday.
  • On-chain data shows that BTC's daily active addresses are decreasing, signaling a bearish move ahead.

Bitcoin (BTC) price trades in the red for a second consecutive day on Thursday, down by 1.16% at $58,105. Sentiment around the main crypto asset seems to have deteriorated after Arkham Intelligence data showed that a wallet associated with the US government transferred 10,000 BTC, worth $593.5 million, to Coinbase Prime. Additionally, Bitcoin Spot ETFs recorded a mild outflow of $81.40 million, snapping a streak of two days of minor inflows.

 

Daily digest market movers: US government transfer weighs on Bitcoin

  • Arkham Intelligence data shows that on Wednesday, a wallet associated with the US government transferred 10,000 BTC, worth $593.5 million, to Coinbase Prime. These funds were related to Silk Road Confiscated Funds by the US Department of Justice (DOJ).
  • Historical data from Lookonchain shows that US government-related transfers earlier this year have led to an approximate 5% drop in Bitcoin's price within three days. As Wednesday’s transfer of 10,000 BTC was the largest known this year so far, it could generate FUD (Fear, Uncertainty, Doubt) among traders, potentially contributing to a decline in Bitcoin's price.
  • Data from Coinglass shows that US-listed Bitcoin Spot ETFs recorded a mild outflow of $81.40 million on Wednesday. This highlights the importance of monitoring these net flows to gauge market dynamics and investor sentiment. Still, these outflows are very small, considering that the total Bitcoin reserves held by the 11 US spot Bitcoin ETFs are now at $55.15 billion.

Bitcoin Spot ETF Net Inflow (USD) chart

Bitcoin Spot ETF Net Inflow (USD) chart

Bitcoin Spot ETF Net Inflow (USD) chart

  • Santiment's Daily Active Addresses index, which helps track network activity over time. A rise in the metric signals greater blockchain usage, while declining addresses point to lower demand for the network.
  • In BTC's case, Daily Active Addresses declined 6.5% from Tuesday to Thursday and have been falling constantly since mid-March, indicating that demand for BTC's blockchain usage is decreasing.

Bitcoin  Daily Active Addresses index chart

Bitcoin  Daily Active Addresses index chart

 

Technical analysis: BTC finds rejection around $62,000 level

Bitcoin price has retested and failed to overcome the 61.8% Fibonacci retracement level of $62,066, drawn from the swing high of $70,079 on July 29 to the low of $49,101 on August 5. As of Thursday, it trades down 1.16% at $58,105 at the time of writing.

 

If $62,066 holds as resistance and BTC continues to decline, it could crash 15% from the current level towards $58,105 and even retest its daily support level of $49,917.

On the daily chart, the Relative Strength Index (RSI) and Awesome Oscillator (AO) trade below their neutral levels of 50 and zero, respectively, suggesting an impending bearish trend.

BTC/USDT daily chart

BTC/USDT daily chart

However, if Bitcoin price is able to close above the August 2 high of $65,596, it would set a higher high on the daily chart, possibly leading to a 6% price increase and testing the weekly resistance at $69,648.

Bitcoin, altcoins, stablecoins FAQs

Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.

Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.

Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.

Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Ripple's XRP crosses $100 billion market cap following high expectations for its stablecoin and ETF approvals

Ripple's XRP crosses $100 billion market cap following high expectations for its stablecoin and ETF approvals

Ripple's XRP rallied near the $2 mark on Friday after rumors of New York regulators approving the company's RLUSD stablecoin surfaced. The growing demand for an XRP exchange-traded fund could also accelerate its launch in 2025.

More Ripple News
Ethereum Price Forecast: ETH eyes yearly high resistance of $4,093 amid heightened interest among US traders

Ethereum Price Forecast: ETH eyes yearly high resistance of $4,093 amid heightened interest among US traders

Ethereum is trading near the $3,600 level on Friday and could stage a rally to test its yearly high resistance of $4,093. The rally is fueled by ETH Chicago Mercantile Exchange open interest growth and a rise in USDT supply on the Main chain.

More Ethereum News
Cardano's ADA, JTO, NEON lead $570 million unlock week ahead of massive $3 billion in further December unlocks

Cardano's ADA, JTO, NEON lead $570 million unlock week ahead of massive $3 billion in further December unlocks

Tokenomist data on Friday revealed that the crypto market will witness another week of heavy cliff unlocks worth over $570 million as part of the larger $3.5 billion December supply injection.

More Cryptocurrencies News
Stellar Price Forecast: Eyes for further gains as bounces off support level and bullish on-chain metrics

Stellar Price Forecast: Eyes for further gains as bounces off support level and bullish on-chain metrics

Stellar experienced a pullback in the first half of the week but recovered in the second half and is trading around $0.54 on Friday, after rallying more than 170% and reaching levels not seen in over three years in the previous week. 

More Stellar News
Bitcoin: A healthy correction

Bitcoin: A healthy correction

Bitcoin (BTC) experienced a 7% correction earlier in the week, dropping to $90,791 on Tuesday before recovering to $97,000 by Friday. On-chain data suggests a modest rebound in institutional demand, with holders buying the dip. A recent report indicates BTC remains undervalued, projecting a potential rally toward $146K. 

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP