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According to Arkham Intelligence, Coinbase holds a staggering Bitcoin stash: $52 billion worth of Bitcoin, making it the top holder of BTC, with over 4.3% of the total supply.

"Coinbase holds $52 Billion of Bitcoin. They’re the top holder of BTC with over 4.3% of the supply," Arkham Intelligence wrote in a tweet.

In light of the recent announcement about "cbBTC," Arkham Intelligence poses an interesting question concerning Coinbase's significant Bitcoin reserves: "How much of this will be channeled into the decentralized finance (DeFi)?"

Coinbase recently released a tweet about "cbBTC." In the X thread, Coinbase teased the upcoming launch of cbBTC, expected to play a crucial role in the DeFi space on the Base network, Coinbase's Ethereum layer-2 blockchain.

cbBTC is anticipated to build a huge Bitcoin economic system on the Base network and would be a competitor to WBTC.

Bitcoin reacts to CPI data

Today, the U.S. announced that the seasonally adjusted core CPI monthly rate in July was 0.2%, compared to 0.2% projected and 0.1% previously.

In July, the unadjusted CPI annual rate in the United States was 2.9%, compared to 3.0% expectations and 3.0% the previous month. The annual rate of the unadjusted core CPI in the United States was 3.2%, falling for the fourth consecutive month and the lowest level since April 2021.

According to CME, the Federal Reserve's likelihood of decreasing interest rates by 25 basis points in September is 56.5%, while the probability of cutting rates by 50 basis points is 43.5%.

Matt Hougan Bitwise CIO summarizes two takeaways from the recent CPI release: "There are two take-aways that matter from the CPI:1) The Fed will start cutting rates in September2) 3% is the new baseline for inflation, not 2%.Both are bullish for bitcoin."

Bitcoin posted an unexpected reaction to the CPI data, falling below $59,000 at one point in Tuesday's trading session. At the time of writing, BTC was down 0.43% in the last 24 hours to $59,283 having reached intraday highs of $61,827.