According to Lookonchain, a previously inactive wallet made a significant transaction by depositing 500 BTC, valued at approximately $46.87 million, into Coinbase Prime on January 10, 2025, at around 8:00 AM UTC. This wallet had received the same amount of BTC six years ago when Bitcoin's price was $7,000, indicating a substantial increase in value since the initial acquisition. This movement has caught the attention of the market due to the wallet's long period of inactivity and the sudden transfer of a large volume of Bitcoin.

The substantial deposit into Coinbase Prime suggests potential trading intentions, possibly hinting at a strategy to capitalize on current market conditions. The transfer could indicate a preparation for selling, which might influence short-term market dynamics. Historically, large inflows into exchanges have often led to increased selling pressure, which could result in a temporary dip in Bitcoin's price. Traders observing this event may consider this as a potential signal to adjust their positions, either by securing profits or by preparing for potential buying opportunities if prices dip.

Technical indicators at the time of the transaction showed Bitcoin trading at approximately $93,740, suggesting a bullish sentiment in the market with a trading volume of around 35,000 BTC over the last 24 hours. The 24-hour Relative Strength Index (RSI) was hovering near 70, indicating that the asset was approaching overbought levels, which could lead to a price correction. Additionally, the MACD (Moving Average Convergence Divergence) indicator showed a bullish crossover, reinforcing the potential for continued upward momentum. However, the large transfer to Coinbase Prime, as noted by Lookonchain, could offset these indicators if it leads to substantial selling pressure. Monitoring the order book depth on Coinbase Prime and other major exchanges could provide insights into potential market reactions.