A Bitcoin (BTC) whale is acting bearish to the news of the newly released United States Consumer Price Index (CPI) data. Per an earlier report from Coingape, the released data shows CPI inflation came in hotter than anticipated at 3.5%, a reading that shows headwinds still lie ahead of the market.
Bitcoin Whale Taking Cover
According to data insight from the crypto analytics platform Lookonchain, whale deposited 800 BTC worth approximately $54.6 million to Binance again 5 minutes after the March CPI inflation was released.
Per the observation from Lookonchain, this whale has a track record of selling when the market is in distress. He also reportedly deposited 800 BTC worth about $57.16 million to Binance on April 9 after that the price of BTC dropped by approximately 4%. The whale now currently holds 13,665 BTC valued at $928.6 million. In reality, there is a very strong relationship between Bitcoin and the broader macro-economic sentiment.
A higher-than-expected inflation, even though the market is tiny, implies that the Federal Reserve’s plan to cut interest rates is now likely to be shoved aside. Market experts had projected that the interest rate cut may begin as early as September. Should the rate cut be implemented on the grounds that inflation is abating, it will create a very bullish market for crypto as legacy traditional finance investment will become less attractive across the board.
With the news of hotter-than-expected inflation, the whale’s push to Binance suggests a lack of confidence in the growth pace of the asset. While this might not be the underlying motive behind the funds’ transfer to Binance, the move in general has sparked concern that this might be the new trend for market whales.
Bitcoin Safeguards In Place
Besides the action of the Bitcoin whale or others in the market, BTC’s design has helped create a safeguard that keeps it from undue dump-off. Despite the growing accumulation of Bitcoin by spot Bitcoin ETF issuers like BlackRock, the overall holdings by one firm are just a fraction of the total in the network.
This means that should most known Bitcoin whales like MicroStrategy choose to offload their coins, beyond the bearish sentiment that will be triggered, there may be no permanent shift in the network.
Overall, Bitcoin is acting resilient to the current inflation and whale dumping news. The digital currency is changing hands for $68,326.82, down by 2.84% in 24 hours.
The post Bitcoin Whale Sparks 800 BTC Selloff Fears Post-CPI Data Release appeared first on CoinGape.
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