Bitcoin Faces Uncertainty as Dormant Coins Move and Market Activity Declines
Recent developments in the Bitcoin market have sparked concerns among traders and investors, with a significant move of dormant coins and a noticeable decline in network activity. Here’s a closer look at the situation and its potential implications for the cryptocurrency’s future.
Dormant Bitcoin Moves After a Decade; Market Sees Drop in Activity
Over 1,054 BTC, which remained untouched for 7 to 10 years, were recently transferred, suggesting long-term holders might be selling their tokens. The price of Bitcoin has fallen below $82,000, and the number of active sending addresses has declined sharply. The on-chain data depicts weak network activity, and traders are awaiting a price movement. CryptoQuant reported that this transfer could indicate large-scale sales by long-term holders amidst decreasing market activity and price pressure.
Bitcoin Volatility Spikes as U.S. Tariffs Announcement Jolts Markets
Bitcoin experienced intense volatility yesterday, surging above $88,000 before plunging below $82,000 within hours. The massive swing came as U.S. President Donald Trump announced new tariffs on what he declared “Liberation Day,” sparking fresh fear across global markets. The announcement jolted investor sentiment, sending risk assets—including Bitcoin (BTC)—into sharp intraday moves. Bulls are now panicking as selling pressure appears to be building again, raising concerns that more downside may be ahead. Despite the bearish momentum, some analysts remain optimistic.
New York Court Bans Genius Group from Trading Stocks and Holding Bitcoin
The court order against Genius Group, issued by the United States District Court for the Southern District of New York (SDNY) on April 3, bans the company from selling shares, raising funds, or using investor money to buy Bitcoin. This forced the company to liquidate parts of its Bitcoin Treasury to sustain operations. The ruling highlights the tension between decentralized financial strategies and centralized legal systems, and shows vulnerabilities in corporate crypto reserves, challenging the viability of Bitcoin-first treasury strategies amid regulatory uncertainties. Additionally, this case underscores the risks of cross-jurisdictional legal conflicts, where U.S. court actions threaten foreign companies’ ability to comply with local laws and governance structures.
Standard Chartered Reaffirms Bitcoin $500k Target Amid Market Turmoil
The presence of new ‘Liberation Day’ tariffs from a potential returning Trump administration has disrupted the US financial markets, impacting both the stock market and the cryptocurrency sector. Despite the recent downturn that has caused Bitcoin to fall below the $82,000 level, Standard Chartered Bank remains bullish on the asset, reiterating its $500,000 target price prediction for Bitcoin before the end of Trump’s potential second term. The bank had previously made this prediction, and while the recent market volatility has raised questions, analysts still believe in Bitcoin’s eventual resurgence due to several key factors.
Onchain Data Suggests Major ETF Issuers Are Buying Bitcoin
Although Bitcoin has seen wild fluctuations over the past couple of days, institutional investors might show more confidence in the leading cryptocurrency than the TradFi market. The crypto market experienced wider liquidations today, and fears of a broader recession are circulating heavily. Since President Trump imposed much higher tariffs than expected, crypto is mirroring the TradFi stock market with notable downturns. However, the US spot Bitcoin ETFs market shows that institutional demand might rebound in the short term. Prominent blockchain analysis platform Arkham Intelligence noted on social media that Grayscale, Fidelity, and Ark Invest are buying Bitcoin despite the market conditions.
