Crypto markets held steady after August U.S. CPI data landed in line with expectations, keeping hopes alive for a September Federal Reserve rate cut. Headline CPI rose 2.9% year-over-year with core CPI at 3.1%, while monthly inflation slightly exceeded forecasts. The data strengthened odds of a 25 bps cut but lowered chances of a larger move.

Bitcoin traded in the $113,000–$114,000 range, a level analysts call a “bullish gate,” while ether stayed above $4,400. Spot bitcoin and ether ETFs saw strong inflows, signaling renewed risk appetite, though options markets showed traders are still hedging against downside. With CPI behind, focus now shifts to next week’s FOMC meeting, where experts, including Goldman Sachs’ David Solomon, anticipate a cut. Some market makers are projecting as many as three cuts by early 2026, a backdrop seen as supportive for bitcoin’s role as an inflation hedge.

Amid these macro developments, on-chain data highlighted renewed activity among early bitcoin holders. A dormant wallet holding 444.81 BTC ($50.7M) moved funds for the first time in nearly 13 years, sending 137 BTC ($15.6M) split between a new address and Kraken, suggesting possible selling. The wallet last received funds in November 2012, when the stash was worth just $5,437 at a price of $12.22 per coin. It still holds about 307.79 BTC ($35.1M).

This move follows a broader trend of OG whales reactivating dormant wallets. In July, Galaxy Digital helped facilitate the $9B sale of 80,000 BTC from a Satoshi-era holder, while another whale rotated billions from BTC into ETH. Just last week, a wallet containing 479 BTC ($53M) also became active after 13 years.

Why This Is Important

These two developments, align with the strong inflows into spot crypto ETFs, suggesting institutional interest is picking up again. On the other hand, the reactivation of an OG bitcoin wallet underscores the growing role of legacy holders in today’s market. While some of these moves may signal profit-taking or portfolio rotation, the fact that early adopters are moving coins last touched over a decade ago highlights how bitcoin’s maturity as an asset is colliding with new institutional demand.

These dynamics illustrate a market at a crossroads whereby macro tailwinds are building for higher prices, but long-term holders may continue to test liquidity with sizable transfers, creating both opportunity and risk for traders.