Bitcoin Dips Below $109K as Dormant Whales Stir and U.S. Lawmakers Prepare for ‘Crypto Week’

Summary: Bitcoin slipped beneath the $109,000 mark on Friday amid notable profit-taking activity. The move was punctuated by the awakening of two long-dormant wallets, which transferred a combined 20,000 BTC—worth over $2.18 billion—creating ripples across the crypto market ahead of an anticipated U.S. legislative focus on crypto regulation.

Dormant Whales Move Billion-Dollar Stakes

According to on-chain analytics firm Lookonchain, two large Bitcoin wallets, inactive since the early 2010s, sparked market concerns by transferring their massive holdings. One wallet, originally funded in April 2011 with 10,000 BTC purchased at just $0.78 per coin, moved its entire balance within hours—now valued at over $1 billion.

Another wallet followed suit with a similar 10,000 BTC move, consolidating a total of 20,000 BTC ($2.18 billion) into circulation in a single session. The sudden reactivation of these addresses—dormant for more than 14 years—represents a return on investment of approximately 140,000× and captured the attention of analysts and traders.

Another wallet of this Bitcoin OG also transferred out 10,000 $BTC ($1.09B) just now after being dormant for 14+ years.

14 years ago, $BTC was only $0.78 — that’s a mind-blowing 140,000x return! https://t.co/e2m8AunEMchttps://t.co/G0YXqPi4mK pic.twitter.com/E1fgGlYA4u

— Lookonchain (@lookonchain) July 4, 2025

Political Push Comes as Bitcoin Hesitates

The price action comes just days ahead of a pivotal week on Capitol Hill. From July 14–18, U.S. lawmakers will host “Crypto Week” to review several major pieces of crypto legislation, including the Digital Asset Market Clarity Act, the Anti-CBDC Surveillance State Act, and the GENIUS Act.

These bills aim to establish clearer market structures, define oversight for stablecoins, and prevent the rollout of a surveillance-oriented retail digital dollar. Leading the push are House Financial Services Chair French Hill, Agriculture Chair Glenn “GT” Thompson, and Speaker Mike Johnson, who intend to present the finalized legislation to President Donald Trump.

While advocates hail the effort as a move toward regulatory clarity, some analysts warn that the legislative focus could introduce increased short-term volatility to the digital asset markets.

Key Levels and Market Sentiment

Bitcoin briefly topped $109,000 during overnight trading before retreating to around $108,700 at the time of writing. The market remains just under $3,000 away from its all-time high of approximately $112,000.

Institutional interest continues to support Bitcoin’s momentum, with spot Bitcoin ETFs steadily accumulating assets and growing adoption among corporate treasuries. However, broader macroeconomic pressures—including rising interest rates, banking sector uncertainty, and geopolitical tensions—continue to dampen risk appetite among traders.

All eyes now turn to Crypto Week.

Featured image via Meta; chart via TradingView