Why is Bitcoin down today (July 4)?
Bitcoin retreats from week's highs
On Friday, Bitcoin and the broader cryptocurrency market dropped around 2% as investors took profits, trade tensions resurfaced, and expectations for Federal Reserve rate cuts were lowered.
However, the key driver appeared to be the mystery surrounding movements of 15-year-old whale wallets and fears of a potential sell-off.
On U.S. Independence Day, Bitcoin fell nearly 2% to $107,900, pulling back sharply from this week's high of $110,200.
BTC price dynamics for 24 hours. Source: CoinMarketCap
The holiday kicked off with a shock, as blockchain analysts tracked movements from two addresses containing 20,000 BTC that had been dormant since 2011. That number later doubled to 40,000 BTC—nearly $4.5 billion at current prices.
It’s believed that a single long-term Bitcoin holder may be behind the activity, possibly controlling at least 80,000 BTC across eight wallets (valued at about $8.7 billion). Most of these coins were reportedly acquired at a price of just $0.78 per BTC.
New ATH on hold
Although popular crypto influencer Lark Davis noted that such a large sale is unlikely to be executed on open markets, and would more likely occur as an OTC (over-the-counter) deal, which typically has a more limited impact on market prices.
Loading...
Still, the market is watching closely, as large movements like these can impact investor sentiment and potentially shift short-term market dynamics, especially in light of recent crypto volatility.
This event has already been dubbed a “black swan” in relation to the anticipated new all-time high (ATH) for Bitcoin, which many expected to come next week.
Investor sentiment on July 4th was also dampened by strong U.S. labor market data, which made it clear that the Federal Reserve is unlikely to cut interest rates before the fall.
In addition, ongoing uncertainty around U.S. tariff negotiations with major trade partners—such as Japan, South Korea, and the European Union—is heightening concerns of a prolonged trade war. So the market tension remains, on several fronts.
As we wrote, Bitcoin could reach new ATH amid passage of ‘Big Beautiful Bill'
