diff --git a/changelog.md b/changelog.md
index d71bded0a0..59e544fad6 100644
--- a/changelog.md
+++ b/changelog.md
@@ -8,7 +8,9 @@
 * [3124](https://github.com/zeta-chain/node/pull/3124) - integrate SPL deposits
 
 ### Tests
+
 * [3075](https://github.com/zeta-chain/node/pull/3075) - ton: withdraw concurrent, deposit & revert.
+* [3105](https://github.com/zeta-chain/node/pull/3105) - split Bitcoin E2E tests into two runners for deposit and withdraw
 
 ### Refactor
 * [3118](https://github.com/zeta-chain/node/pull/3118) - zetaclient: remove hsm signer
diff --git a/cmd/zetae2e/bitcoin_address.go b/cmd/zetae2e/bitcoin_address.go
index 70d64ab582..be1251d1d2 100644
--- a/cmd/zetae2e/bitcoin_address.go
+++ b/cmd/zetae2e/bitcoin_address.go
@@ -66,14 +66,11 @@ func runBitcoinAddress(cmd *cobra.Command, args []string) error {
 		return err
 	}
 
-	addr, privKey, err := r.GetBtcAddress()
-	if err != nil {
-		return err
-	}
+	addr, privKey := r.GetBtcAddress()
 
-	logger.Print("* BTC address: %s", addr)
+	logger.Print("* BTC address: %s", addr.EncodeAddress())
 	if showPrivKey {
-		logger.Print("* BTC privkey: %s", privKey)
+		logger.Print("* BTC privkey: %s", privKey.String())
 	}
 
 	return nil
diff --git a/cmd/zetae2e/config/local.yml b/cmd/zetae2e/config/local.yml
index 2481ab31fa..5cc87be394 100644
--- a/cmd/zetae2e/config/local.yml
+++ b/cmd/zetae2e/config/local.yml
@@ -16,10 +16,14 @@ additional_accounts:
     bech32_address: "zeta13t3zjxvwec7g38q8mdjga37rpes9zkfvv7tkn2"
     evm_address: "0x8Ae229198eCE3c889C07DB648Ec7C30E6051592c"
     private_key: "105460aebf71b10bfdb710ef5aa6d2932ee6ff6fc317ac9c24e0979903b10a5d"
-  user_bitcoin:
+  user_bitcoin_deposit:
     bech32_address: "zeta19q7czqysah6qg0n4y3l2a08gfzqxydla492v80"
     evm_address: "0x283d810090EdF4043E75247eAeBcE848806237fD"
     private_key: "7bb523963ee2c78570fb6113d886a4184d42565e8847f1cb639f5f5e2ef5b37a"
+  user_bitcoin_withdraw:
+    bech32_address: "zeta17e77anpmzhuuam67hg6x3mtqrulqh80z9chv70"
+    evm_address: "0xf67deecc3B15F9CEeF5eba3468ed601f3e0B9de2"
+    private_key: "2b3306a8ac43dbf0e350b87876c131e7e12bd49563a16de9ce8aeb664b94d559"
   user_solana:
     bech32_address: "zeta1zqlajgj0qr8rqylf2c572t0ux8vqt45d4zngpm"
     evm_address: "0x103FD9224F00ce3013e95629e52DFc31D805D68d"
diff --git a/cmd/zetae2e/config/localnet.yml b/cmd/zetae2e/config/localnet.yml
index 5bd207a020..24e51223ef 100644
--- a/cmd/zetae2e/config/localnet.yml
+++ b/cmd/zetae2e/config/localnet.yml
@@ -16,10 +16,14 @@ additional_accounts:
     bech32_address: "zeta13t3zjxvwec7g38q8mdjga37rpes9zkfvv7tkn2"
     evm_address: "0x8Ae229198eCE3c889C07DB648Ec7C30E6051592c"
     private_key: "105460aebf71b10bfdb710ef5aa6d2932ee6ff6fc317ac9c24e0979903b10a5d"
-  user_bitcoin:
+  user_bitcoin_deposit:
     bech32_address: "zeta19q7czqysah6qg0n4y3l2a08gfzqxydla492v80"
     evm_address: "0x283d810090EdF4043E75247eAeBcE848806237fD"
     private_key: "7bb523963ee2c78570fb6113d886a4184d42565e8847f1cb639f5f5e2ef5b37a"
+  user_bitcoin_withdraw:
+    bech32_address: "zeta17e77anpmzhuuam67hg6x3mtqrulqh80z9chv70"
+    evm_address: "0xf67deecc3B15F9CEeF5eba3468ed601f3e0B9de2"
+    private_key: "2b3306a8ac43dbf0e350b87876c131e7e12bd49563a16de9ce8aeb664b94d559"
   user_solana:
     bech32_address: "zeta1zqlajgj0qr8rqylf2c572t0ux8vqt45d4zngpm"
     evm_address: "0x103FD9224F00ce3013e95629e52DFc31D805D68d"
diff --git a/cmd/zetae2e/local/bitcoin.go b/cmd/zetae2e/local/bitcoin.go
index f28f182877..900c9c3792 100644
--- a/cmd/zetae2e/local/bitcoin.go
+++ b/cmd/zetae2e/local/bitcoin.go
@@ -5,55 +5,116 @@ import (
 	"time"
 
 	"github.com/fatih/color"
+	"github.com/stretchr/testify/require"
 
 	"github.com/zeta-chain/node/e2e/config"
 	"github.com/zeta-chain/node/e2e/e2etests"
 	"github.com/zeta-chain/node/e2e/runner"
+	"github.com/zeta-chain/node/testutil"
 )
 
-// bitcoinTestRoutine runs Bitcoin related e2e tests
-func bitcoinTestRoutine(
+// initBitcoinTestRunners initializes Bitcoin deposit and withdraw test runners
+func initBitcoinTestRunners(
 	conf config.Config,
 	deployerRunner *runner.E2ERunner,
 	verbose bool,
-	initBitcoinNetwork bool,
-	testNames ...string,
-) func() error {
-	return func() (err error) {
-		account := conf.AdditionalAccounts.UserBitcoin
-		// initialize runner for bitcoin test
-		bitcoinRunner, err := initTestRunner(
-			"bitcoin",
-			conf,
-			deployerRunner,
-			account,
-			runner.NewLogger(verbose, color.FgYellow, "bitcoin"),
-		)
-		if err != nil {
-			return err
-		}
+	initNetwork bool,
+	depositTests []string,
+	withdrawTests []string,
+) (func() error, func() error) {
+	// initialize runner for deposit tests
+	// deposit tests need Bitcoin node wallet to handle UTXOs
+	account := conf.AdditionalAccounts.UserBitcoinDeposit
+	runnerDeposit := initBitcoinRunner(
+		"btc_deposit",
+		account,
+		conf,
+		deployerRunner,
+		color.FgYellow,
+		verbose,
+		initNetwork,
+		true,
+	)
 
-		bitcoinRunner.Logger.Print("🏃 starting Bitcoin tests")
-		startTime := time.Now()
+	// initialize runner for withdraw tests
+	// withdraw tests DON'T use Bitcoin node wallet
+	account = conf.AdditionalAccounts.UserBitcoinWithdraw
+	runnerWithdraw := initBitcoinRunner(
+		"btc_withdraw",
+		account,
+		conf,
+		deployerRunner,
+		color.FgHiYellow,
+		verbose,
+		initNetwork,
+		false,
+	)
+
+	// initialize funds
+	// send BTC to TSS for gas fees and to tester ZEVM address
+	if initNetwork {
+		// mine 101 blocks to ensure the BTC rewards are spendable
+		// Note: the block rewards can be sent to any address in here
+		_, err := runnerDeposit.GenerateToAddressIfLocalBitcoin(101, runnerDeposit.BTCDeployerAddress)
+		require.NoError(runnerDeposit, err)
 
-		// funding the account
+		// send BTC to ZEVM addresses
+		runnerDeposit.DepositBTC(runnerDeposit.EVMAddress())
+		runnerDeposit.DepositBTC(runnerWithdraw.EVMAddress())
+	}
+
+	// create test routines
+	routineDeposit := createBitcoinTestRoutine(runnerDeposit, depositTests)
+	routineWithdraw := createBitcoinTestRoutine(runnerWithdraw, withdrawTests)
+
+	return routineDeposit, routineWithdraw
+}
+
+// initBitcoinRunner initializes the Bitcoin runner for given test name and account
+func initBitcoinRunner(
+	name string,
+	account config.Account,
+	conf config.Config,
+	deployerRunner *runner.E2ERunner,
+	printColor color.Attribute,
+	verbose, initNetwork, createWallet bool,
+) *runner.E2ERunner {
+	// initialize runner for bitcoin test
+	runner, err := initTestRunner(name, conf, deployerRunner, account, runner.NewLogger(verbose, printColor, name))
+	testutil.NoError(err)
+
+	// setup TSS address and setup deployer wallet
+	runner.SetupBitcoinAccounts(createWallet)
+
+	// initialize funds
+	if initNetwork {
+		// send some BTC block rewards to the deployer address
+		_, err = runner.GenerateToAddressIfLocalBitcoin(4, runner.BTCDeployerAddress)
+		require.NoError(runner, err)
+
+		// send ERC20 token on EVM
 		txERC20Send := deployerRunner.SendERC20OnEvm(account.EVMAddress(), 1000)
-		bitcoinRunner.WaitForTxReceiptOnEvm(txERC20Send)
+		runner.WaitForTxReceiptOnEvm(txERC20Send)
 
-		// depositing the necessary tokens on ZetaChain
-		txEtherDeposit := bitcoinRunner.DepositEther()
-		txERC20Deposit := bitcoinRunner.DepositERC20()
+		// deposit ETH and ERC20 tokens on ZetaChain
+		txEtherDeposit := runner.DepositEther()
+		txERC20Deposit := runner.DepositERC20()
 
-		bitcoinRunner.WaitForMinedCCTX(txEtherDeposit)
-		bitcoinRunner.WaitForMinedCCTX(txERC20Deposit)
+		runner.WaitForMinedCCTX(txEtherDeposit)
+		runner.WaitForMinedCCTX(txERC20Deposit)
+	}
 
-		bitcoinRunner.SetupBitcoinAccount(initBitcoinNetwork)
-		bitcoinRunner.DepositBTC()
+	return runner
+}
 
-		// run bitcoin test
-		// Note: due to the extensive block generation in Bitcoin localnet, block header test is run first
-		// to make it faster to catch up with the latest block header
-		testsToRun, err := bitcoinRunner.GetE2ETestsToRunByName(
+// createBitcoinTestRoutine creates a test routine for given test names
+func createBitcoinTestRoutine(r *runner.E2ERunner, testNames []string) func() error {
+	return func() (err error) {
+		r.Logger.Print("🏃 starting bitcoin tests")
+		startTime := time.Now()
+
+		// run bitcoin tests
+		testsToRun, err := r.GetE2ETestsToRunByName(
 			e2etests.AllE2ETests,
 			testNames...,
 		)
@@ -61,15 +122,11 @@ func bitcoinTestRoutine(
 			return fmt.Errorf("bitcoin tests failed: %v", err)
 		}
 
-		if err := bitcoinRunner.RunE2ETests(testsToRun); err != nil {
+		if err := r.RunE2ETests(testsToRun); err != nil {
 			return fmt.Errorf("bitcoin tests failed: %v", err)
 		}
 
-		if err := bitcoinRunner.CheckBtcTSSBalance(); err != nil {
-			return err
-		}
-
-		bitcoinRunner.Logger.Print("🍾 Bitcoin tests completed in %s", time.Since(startTime).String())
+		r.Logger.Print("🍾 bitcoin tests completed in %s", time.Since(startTime).String())
 
 		return err
 	}
diff --git a/cmd/zetae2e/local/local.go b/cmd/zetae2e/local/local.go
index 9b818ea8c0..9858ac6382 100644
--- a/cmd/zetae2e/local/local.go
+++ b/cmd/zetae2e/local/local.go
@@ -313,7 +313,8 @@ func localE2ETest(cmd *cobra.Command, _ []string) {
 			e2etests.TestMessagePassingEVMtoZEVMRevertFailName,
 		}
 
-		bitcoinTests := []string{
+		// btc withdraw tests are those that need a Bitcoin node wallet to send UTXOs
+		bitcoinDepositTests := []string{
 			e2etests.TestBitcoinDonationName,
 			e2etests.TestBitcoinDepositName,
 			e2etests.TestBitcoinDepositAndCallName,
@@ -323,17 +324,19 @@ func localE2ETest(cmd *cobra.Command, _ []string) {
 			e2etests.TestBitcoinStdMemoDepositAndCallRevertName,
 			e2etests.TestBitcoinStdMemoDepositAndCallRevertOtherAddressName,
 			e2etests.TestBitcoinStdMemoInscribedDepositAndCallName,
+			e2etests.TestCrosschainSwapName,
+		}
+		bitcoinWithdrawTests := []string{
 			e2etests.TestBitcoinWithdrawSegWitName,
 			e2etests.TestBitcoinWithdrawInvalidAddressName,
 			e2etests.TestZetaWithdrawBTCRevertName,
-			e2etests.TestCrosschainSwapName,
 		}
-		bitcoinAdvancedTests := []string{
+		bitcoinWithdrawTestsAdvanced := []string{
 			e2etests.TestBitcoinWithdrawTaprootName,
 			e2etests.TestBitcoinWithdrawLegacyName,
-			e2etests.TestBitcoinWithdrawMultipleName,
 			e2etests.TestBitcoinWithdrawP2SHName,
 			e2etests.TestBitcoinWithdrawP2WSHName,
+			e2etests.TestBitcoinWithdrawMultipleName,
 			e2etests.TestBitcoinWithdrawRestrictedName,
 		}
 		ethereumTests := []string{
@@ -367,7 +370,7 @@ func localE2ETest(cmd *cobra.Command, _ []string) {
 			erc20Tests = append(erc20Tests, erc20AdvancedTests...)
 			zetaTests = append(zetaTests, zetaAdvancedTests...)
 			zevmMPTests = append(zevmMPTests, zevmMPAdvancedTests...)
-			bitcoinTests = append(bitcoinTests, bitcoinAdvancedTests...)
+			bitcoinWithdrawTests = append(bitcoinWithdrawTests, bitcoinWithdrawTestsAdvanced...)
 			ethereumTests = append(ethereumTests, ethereumAdvancedTests...)
 		}
 
@@ -375,7 +378,16 @@ func localE2ETest(cmd *cobra.Command, _ []string) {
 		eg.Go(erc20TestRoutine(conf, deployerRunner, verbose, erc20Tests...))
 		eg.Go(zetaTestRoutine(conf, deployerRunner, verbose, zetaTests...))
 		eg.Go(zevmMPTestRoutine(conf, deployerRunner, verbose, zevmMPTests...))
-		eg.Go(bitcoinTestRoutine(conf, deployerRunner, verbose, !skipBitcoinSetup, bitcoinTests...))
+		runnerDeposit, runnerWithdraw := initBitcoinTestRunners(
+			conf,
+			deployerRunner,
+			verbose,
+			!skipBitcoinSetup,
+			bitcoinDepositTests,
+			bitcoinWithdrawTests,
+		)
+		eg.Go(runnerDeposit)
+		eg.Go(runnerWithdraw)
 		eg.Go(ethereumTestRoutine(conf, deployerRunner, verbose, ethereumTests...))
 	}
 
@@ -470,7 +482,7 @@ func localE2ETest(cmd *cobra.Command, _ []string) {
 	}
 
 	// if all tests pass, cancel txs priority monitoring and check if tx priority is not correct in some blocks
-	logger.Print("⏳ e2e tests passed,checking tx priority")
+	logger.Print("⏳ e2e tests passed, checking tx priority")
 	monitorPriorityCancel()
 	if err := <-txPriorityErrCh; err != nil && errors.Is(err, errWrongTxPriority) {
 		logger.Print("❌ %v", err)
@@ -483,10 +495,15 @@ func localE2ETest(cmd *cobra.Command, _ []string) {
 	if testTSSMigration {
 		TSSMigration(deployerRunner, logger, verbose, conf)
 	}
+
 	// Verify that there are no trackers left over after tests complete
 	if !skipTrackerCheck {
 		deployerRunner.EnsureNoTrackers()
 	}
+
+	// Verify that the balance of restricted address is zero
+	deployerRunner.EnsureZeroBalanceOnRestrictedAddressZEVM()
+
 	// print and validate report
 	networkReport, err := deployerRunner.GenerateNetworkReport()
 	if err != nil {
diff --git a/cmd/zetae2e/setup_bitcoin.go b/cmd/zetae2e/setup_bitcoin.go
index 622855a027..a51d8880b0 100644
--- a/cmd/zetae2e/setup_bitcoin.go
+++ b/cmd/zetae2e/setup_bitcoin.go
@@ -58,7 +58,7 @@ func runSetupBitcoin(_ *cobra.Command, args []string) error {
 		return err
 	}
 
-	r.SetupBitcoinAccount(true)
+	r.SetupBitcoinAccounts(true)
 
 	logger.Print("* BTC setup done")
 
diff --git a/contrib/localnet/orchestrator/start-zetae2e.sh b/contrib/localnet/orchestrator/start-zetae2e.sh
index 33f0d4e956..5d8c9c5586 100644
--- a/contrib/localnet/orchestrator/start-zetae2e.sh
+++ b/contrib/localnet/orchestrator/start-zetae2e.sh
@@ -98,8 +98,11 @@ fund_eth_from_config '.additional_accounts.user_zeta_test.evm_address' 10000 "ze
 # unlock zevm message passing tester accounts
 fund_eth_from_config '.additional_accounts.user_zevm_mp_test.evm_address' 10000 "zevm mp tester"
 
-# unlock bitcoin tester accounts
-fund_eth_from_config '.additional_accounts.user_bitcoin.evm_address' 10000 "bitcoin tester"
+# unlock bitcoin deposit tester accounts
+fund_eth_from_config '.additional_accounts.user_bitcoin_deposit.evm_address' 10000 "bitcoin deposit tester"
+
+# unlock bitcoin withdraw tester accounts
+fund_eth_from_config '.additional_accounts.user_bitcoin_withdraw.evm_address' 10000 "bitcoin withdraw tester"
 
 # unlock solana tester accounts
 fund_eth_from_config '.additional_accounts.user_solana.evm_address' 10000 "solana tester"
diff --git a/contrib/localnet/scripts/start-zetacored.sh b/contrib/localnet/scripts/start-zetacored.sh
index c0e8424738..38047a6b46 100755
--- a/contrib/localnet/scripts/start-zetacored.sh
+++ b/contrib/localnet/scripts/start-zetacored.sh
@@ -242,8 +242,11 @@ then
 # zeta tester
   address=$(yq -r '.additional_accounts.user_zeta_test.bech32_address' /root/config.yml)
   zetacored add-genesis-account "$address" 100000000000000000000000000azeta
-# bitcoin tester
-  address=$(yq -r '.additional_accounts.user_bitcoin.bech32_address' /root/config.yml)
+# bitcoin deposit tester
+  address=$(yq -r '.additional_accounts.user_bitcoin_deposit.bech32_address' /root/config.yml)
+  zetacored add-genesis-account "$address" 100000000000000000000000000azeta
+# bitcoin withdraw tester
+  address=$(yq -r '.additional_accounts.user_bitcoin_withdraw.bech32_address' /root/config.yml)
   zetacored add-genesis-account "$address" 100000000000000000000000000azeta
 # solana tester
   address=$(yq -r '.additional_accounts.user_solana.bech32_address' /root/config.yml)
diff --git a/e2e/config/config.go b/e2e/config/config.go
index 15ca4a1f2c..33a8c2bea8 100644
--- a/e2e/config/config.go
+++ b/e2e/config/config.go
@@ -61,20 +61,21 @@ type Account struct {
 
 // AdditionalAccounts are extra accounts required to run specific tests
 type AdditionalAccounts struct {
-	UserERC20         Account `yaml:"user_erc20"`
-	UserZetaTest      Account `yaml:"user_zeta_test"`
-	UserZEVMMPTest    Account `yaml:"user_zevm_mp_test"`
-	UserBitcoin       Account `yaml:"user_bitcoin"`
-	UserSolana        Account `yaml:"user_solana"`
-	UserEther         Account `yaml:"user_ether"`
-	UserMisc          Account `yaml:"user_misc"`
-	UserAdmin         Account `yaml:"user_admin"`
-	UserMigration     Account `yaml:"user_migration"` // used for TSS migration, TODO: rename (https://github.com/zeta-chain/node/issues/2780)
-	UserPrecompile    Account `yaml:"user_precompile"`
-	UserV2Ether       Account `yaml:"user_v2_ether"`
-	UserV2ERC20       Account `yaml:"user_v2_erc20"`
-	UserV2EtherRevert Account `yaml:"user_v2_ether_revert"`
-	UserV2ERC20Revert Account `yaml:"user_v2_erc20_revert"`
+	UserERC20           Account `yaml:"user_erc20"`
+	UserZetaTest        Account `yaml:"user_zeta_test"`
+	UserZEVMMPTest      Account `yaml:"user_zevm_mp_test"`
+	UserBitcoinDeposit  Account `yaml:"user_bitcoin_deposit"`
+	UserBitcoinWithdraw Account `yaml:"user_bitcoin_withdraw"`
+	UserSolana          Account `yaml:"user_solana"`
+	UserEther           Account `yaml:"user_ether"`
+	UserMisc            Account `yaml:"user_misc"`
+	UserAdmin           Account `yaml:"user_admin"`
+	UserMigration       Account `yaml:"user_migration"` // used for TSS migration, TODO: rename (https://github.com/zeta-chain/node/issues/2780)
+	UserPrecompile      Account `yaml:"user_precompile"`
+	UserV2Ether         Account `yaml:"user_v2_ether"`
+	UserV2ERC20         Account `yaml:"user_v2_erc20"`
+	UserV2EtherRevert   Account `yaml:"user_v2_ether_revert"`
+	UserV2ERC20Revert   Account `yaml:"user_v2_erc20_revert"`
 }
 
 type PolicyAccounts struct {
@@ -235,7 +236,8 @@ func (a AdditionalAccounts) AsSlice() []Account {
 		a.UserERC20,
 		a.UserZetaTest,
 		a.UserZEVMMPTest,
-		a.UserBitcoin,
+		a.UserBitcoinDeposit,
+		a.UserBitcoinWithdraw,
 		a.UserSolana,
 		a.UserEther,
 		a.UserMisc,
@@ -314,7 +316,11 @@ func (c *Config) GenerateKeys() error {
 	if err != nil {
 		return err
 	}
-	c.AdditionalAccounts.UserBitcoin, err = generateAccount()
+	c.AdditionalAccounts.UserBitcoinDeposit, err = generateAccount()
+	if err != nil {
+		return err
+	}
+	c.AdditionalAccounts.UserBitcoinWithdraw, err = generateAccount()
 	if err != nil {
 		return err
 	}
diff --git a/e2e/e2etests/test_bitcoin_deposit.go b/e2e/e2etests/test_bitcoin_deposit.go
index 590a5c81d8..59df40f9b6 100644
--- a/e2e/e2etests/test_bitcoin_deposit.go
+++ b/e2e/e2etests/test_bitcoin_deposit.go
@@ -13,8 +13,6 @@ func TestBitcoinDeposit(r *runner.E2ERunner, args []string) {
 
 	depositAmount := parseFloat(r, args[0])
 
-	r.SetBtcAddress(r.Name, false)
-
 	txHash := r.DepositBTCWithAmount(depositAmount, nil)
 
 	// wait for the cctx to be mined
diff --git a/e2e/e2etests/test_bitcoin_deposit_and_call_revert.go b/e2e/e2etests/test_bitcoin_deposit_and_call_revert.go
index eed10485bf..0c0e45c77f 100644
--- a/e2e/e2etests/test_bitcoin_deposit_and_call_revert.go
+++ b/e2e/e2etests/test_bitcoin_deposit_and_call_revert.go
@@ -11,10 +11,6 @@ import (
 )
 
 func TestBitcoinDepositAndCallRevert(r *runner.E2ERunner, args []string) {
-	// ARRANGE
-	// Given BTC address
-	r.SetBtcAddress(r.Name, false)
-
 	// Given "Live" BTC network
 	stop := r.MineBlocksIfLocalBitcoin()
 	defer stop()
diff --git a/e2e/e2etests/test_bitcoin_deposit_call.go b/e2e/e2etests/test_bitcoin_deposit_call.go
index d3d6917c59..0ddbcb0b27 100644
--- a/e2e/e2etests/test_bitcoin_deposit_call.go
+++ b/e2e/e2etests/test_bitcoin_deposit_call.go
@@ -13,10 +13,6 @@ import (
 )
 
 func TestBitcoinDepositAndCall(r *runner.E2ERunner, args []string) {
-	// ARRANGE
-	// Given BTC address
-	r.SetBtcAddress(r.Name, false)
-
 	// Given "Live" BTC network
 	stop := r.MineBlocksIfLocalBitcoin()
 	defer stop()
diff --git a/e2e/e2etests/test_bitcoin_donation.go b/e2e/e2etests/test_bitcoin_donation.go
index 1dd5a34859..91b39ebff3 100644
--- a/e2e/e2etests/test_bitcoin_donation.go
+++ b/e2e/e2etests/test_bitcoin_donation.go
@@ -12,10 +12,6 @@ import (
 )
 
 func TestBitcoinDonation(r *runner.E2ERunner, args []string) {
-	// ARRANGE
-	// Given BTC address
-	r.SetBtcAddress(r.Name, false)
-
 	// Given "Live" BTC network
 	stop := r.MineBlocksIfLocalBitcoin()
 	defer stop()
diff --git a/e2e/e2etests/test_bitcoin_std_deposit.go b/e2e/e2etests/test_bitcoin_std_deposit.go
index e90b23d64a..b822487f21 100644
--- a/e2e/e2etests/test_bitcoin_std_deposit.go
+++ b/e2e/e2etests/test_bitcoin_std_deposit.go
@@ -14,9 +14,6 @@ import (
 )
 
 func TestBitcoinStdMemoDeposit(r *runner.E2ERunner, args []string) {
-	// setup deployer BTC address
-	r.SetBtcAddress(r.Name, false)
-
 	// start mining blocks if local bitcoin
 	stop := r.MineBlocksIfLocalBitcoin()
 	defer stop()
diff --git a/e2e/e2etests/test_bitcoin_std_deposit_and_call.go b/e2e/e2etests/test_bitcoin_std_deposit_and_call.go
index 7a9c6ca255..2cdd7caa3d 100644
--- a/e2e/e2etests/test_bitcoin_std_deposit_and_call.go
+++ b/e2e/e2etests/test_bitcoin_std_deposit_and_call.go
@@ -14,9 +14,6 @@ import (
 )
 
 func TestBitcoinStdMemoDepositAndCall(r *runner.E2ERunner, args []string) {
-	// setup deployer BTC address
-	r.SetBtcAddress(r.Name, false)
-
 	// start mining blocks if local bitcoin
 	stop := r.MineBlocksIfLocalBitcoin()
 	defer stop()
diff --git a/e2e/e2etests/test_bitcoin_std_deposit_and_call_revert.go b/e2e/e2etests/test_bitcoin_std_deposit_and_call_revert.go
index 76bf128aad..96b4186d8f 100644
--- a/e2e/e2etests/test_bitcoin_std_deposit_and_call_revert.go
+++ b/e2e/e2etests/test_bitcoin_std_deposit_and_call_revert.go
@@ -11,10 +11,6 @@ import (
 )
 
 func TestBitcoinStdMemoDepositAndCallRevert(r *runner.E2ERunner, args []string) {
-	// ARRANGE
-	// Given BTC address
-	r.SetBtcAddress(r.Name, false)
-
 	// Start mining blocks
 	stop := r.MineBlocksIfLocalBitcoin()
 	defer stop()
diff --git a/e2e/e2etests/test_bitcoin_std_deposit_and_call_revert_other_address.go b/e2e/e2etests/test_bitcoin_std_deposit_and_call_revert_other_address.go
index c6da1b1696..8ecb3b0d5f 100644
--- a/e2e/e2etests/test_bitcoin_std_deposit_and_call_revert_other_address.go
+++ b/e2e/e2etests/test_bitcoin_std_deposit_and_call_revert_other_address.go
@@ -12,10 +12,6 @@ import (
 )
 
 func TestBitcoinStdMemoDepositAndCallRevertOtherAddress(r *runner.E2ERunner, args []string) {
-	// ARRANGE
-	// Given BTC address
-	r.SetBtcAddress(r.Name, false)
-
 	// Start mining blocks
 	stop := r.MineBlocksIfLocalBitcoin()
 	defer stop()
diff --git a/e2e/e2etests/test_bitcoin_std_memo_inscribed_deposit_and_call.go b/e2e/e2etests/test_bitcoin_std_memo_inscribed_deposit_and_call.go
index c9a5d7af31..df23ae8383 100644
--- a/e2e/e2etests/test_bitcoin_std_memo_inscribed_deposit_and_call.go
+++ b/e2e/e2etests/test_bitcoin_std_memo_inscribed_deposit_and_call.go
@@ -14,10 +14,6 @@ import (
 )
 
 func TestBitcoinStdMemoInscribedDepositAndCall(r *runner.E2ERunner, args []string) {
-	// ARRANGE
-	// Given BTC address
-	r.SetBtcAddress(r.Name, false)
-
 	// Start mining blocks
 	stop := r.MineBlocksIfLocalBitcoin()
 	defer stop()
diff --git a/e2e/e2etests/test_bitcoin_withdraw_invalid_address.go b/e2e/e2etests/test_bitcoin_withdraw_invalid_address.go
index 5c7254a3a1..aae4b4a446 100644
--- a/e2e/e2etests/test_bitcoin_withdraw_invalid_address.go
+++ b/e2e/e2etests/test_bitcoin_withdraw_invalid_address.go
@@ -15,8 +15,6 @@ func TestBitcoinWithdrawToInvalidAddress(r *runner.E2ERunner, args []string) {
 	withdrawalAmount := parseFloat(r, args[0])
 	amount := btcAmountFromFloat64(r, withdrawalAmount)
 
-	r.SetBtcAddress(r.Name, false)
-
 	withdrawToInvalidAddress(r, amount)
 }
 
diff --git a/e2e/e2etests/test_bitcoin_withdraw_legacy.go b/e2e/e2etests/test_bitcoin_withdraw_legacy.go
index 091bb63531..ba33c8b24d 100644
--- a/e2e/e2etests/test_bitcoin_withdraw_legacy.go
+++ b/e2e/e2etests/test_bitcoin_withdraw_legacy.go
@@ -11,8 +11,6 @@ func TestBitcoinWithdrawLegacy(r *runner.E2ERunner, args []string) {
 	// check length of arguments
 	require.Len(r, args, 2)
 
-	r.SetBtcAddress(r.Name, false)
-
 	// parse arguments and withdraw BTC
 	receiver, amount := parseBitcoinWithdrawArgs(r, args, defaultReceiver)
 
diff --git a/e2e/e2etests/test_bitcoin_withdraw_multiple.go b/e2e/e2etests/test_bitcoin_withdraw_multiple.go
index 09d77fde80..642f1d49dd 100644
--- a/e2e/e2etests/test_bitcoin_withdraw_multiple.go
+++ b/e2e/e2etests/test_bitcoin_withdraw_multiple.go
@@ -18,9 +18,6 @@ func WithdrawBitcoinMultipleTimes(r *runner.E2ERunner, args []string) {
 		times  = parseInt(r, args[1])
 	)
 
-	// Given BTC address set
-	r.SetBtcAddress(r.Name, false)
-
 	// Given a receiver
 	receiver, err := chains.DecodeBtcAddress(defaultReceiver, r.GetBitcoinChainID())
 	require.NoError(r, err)
diff --git a/e2e/e2etests/test_bitcoin_withdraw_p2sh.go b/e2e/e2etests/test_bitcoin_withdraw_p2sh.go
index 248ce14ec5..e3eda5f9d5 100644
--- a/e2e/e2etests/test_bitcoin_withdraw_p2sh.go
+++ b/e2e/e2etests/test_bitcoin_withdraw_p2sh.go
@@ -11,8 +11,6 @@ func TestBitcoinWithdrawP2SH(r *runner.E2ERunner, args []string) {
 	// check length of arguments
 	require.Len(r, args, 2)
 
-	r.SetBtcAddress(r.Name, false)
-
 	// parse arguments and withdraw BTC
 	defaultReceiver := "2N6AoUj3KPS7wNGZXuCckh8YEWcSYNsGbqd"
 	receiver, amount := parseBitcoinWithdrawArgs(r, args, defaultReceiver)
diff --git a/e2e/e2etests/test_bitcoin_withdraw_p2wsh.go b/e2e/e2etests/test_bitcoin_withdraw_p2wsh.go
index 1865018628..41b65824bc 100644
--- a/e2e/e2etests/test_bitcoin_withdraw_p2wsh.go
+++ b/e2e/e2etests/test_bitcoin_withdraw_p2wsh.go
@@ -10,8 +10,6 @@ import (
 func TestBitcoinWithdrawP2WSH(r *runner.E2ERunner, args []string) {
 	require.Len(r, args, 2)
 
-	r.SetBtcAddress(r.Name, false)
-
 	// parse arguments and withdraw BTC
 	defaultReceiver := "bcrt1qm9mzhyky4w853ft2ms6dtqdyyu3z2tmrq8jg8xglhyuv0dsxzmgs2f0sqy"
 	receiver, amount := parseBitcoinWithdrawArgs(r, args, defaultReceiver)
diff --git a/e2e/e2etests/test_bitcoin_withdraw_restricted_address.go b/e2e/e2etests/test_bitcoin_withdraw_restricted_address.go
index 84bd11b8de..87610cac09 100644
--- a/e2e/e2etests/test_bitcoin_withdraw_restricted_address.go
+++ b/e2e/e2etests/test_bitcoin_withdraw_restricted_address.go
@@ -16,8 +16,6 @@ func TestBitcoinWithdrawRestricted(r *runner.E2ERunner, args []string) {
 	withdrawalAmount := parseFloat(r, args[0])
 	amount := btcAmountFromFloat64(r, withdrawalAmount)
 
-	r.SetBtcAddress(r.Name, false)
-
 	withdrawBitcoinRestricted(r, amount)
 }
 
diff --git a/e2e/e2etests/test_bitcoin_withdraw_segwit.go b/e2e/e2etests/test_bitcoin_withdraw_segwit.go
index fe30c118f8..6d5c7d4516 100644
--- a/e2e/e2etests/test_bitcoin_withdraw_segwit.go
+++ b/e2e/e2etests/test_bitcoin_withdraw_segwit.go
@@ -10,8 +10,6 @@ import (
 func TestBitcoinWithdrawSegWit(r *runner.E2ERunner, args []string) {
 	require.Len(r, args, 2)
 
-	r.SetBtcAddress(r.Name, false)
-
 	// parse arguments
 	defaultReceiver := r.BTCDeployerAddress.EncodeAddress()
 	receiver, amount := parseBitcoinWithdrawArgs(r, args, defaultReceiver)
diff --git a/e2e/e2etests/test_bitcoin_withdraw_taproot.go b/e2e/e2etests/test_bitcoin_withdraw_taproot.go
index f675a88c43..5935bb1986 100644
--- a/e2e/e2etests/test_bitcoin_withdraw_taproot.go
+++ b/e2e/e2etests/test_bitcoin_withdraw_taproot.go
@@ -10,8 +10,6 @@ import (
 func TestBitcoinWithdrawTaproot(r *runner.E2ERunner, args []string) {
 	require.Len(r, args, 2)
 
-	r.SetBtcAddress(r.Name, false)
-
 	// parse arguments and withdraw BTC
 	defaultReceiver := "bcrt1pqqqsyqcyq5rqwzqfpg9scrgwpugpzysnzs23v9ccrydpk8qarc0sj9hjuh"
 	receiver, amount := parseBitcoinWithdrawArgs(r, args, defaultReceiver)
diff --git a/e2e/e2etests/test_migrate_tss.go b/e2e/e2etests/test_migrate_tss.go
index 3825228c14..067623a325 100644
--- a/e2e/e2etests/test_migrate_tss.go
+++ b/e2e/e2etests/test_migrate_tss.go
@@ -20,7 +20,6 @@ import (
 )
 
 func TestMigrateTSS(r *runner.E2ERunner, _ []string) {
-	r.SetBtcAddress(r.Name, false)
 	stop := r.MineBlocksIfLocalBitcoin()
 	defer stop()
 
diff --git a/e2e/e2etests/test_stress_btc_deposit.go b/e2e/e2etests/test_stress_btc_deposit.go
index bedf004bdf..ea15d4fa9b 100644
--- a/e2e/e2etests/test_stress_btc_deposit.go
+++ b/e2e/e2etests/test_stress_btc_deposit.go
@@ -20,8 +20,6 @@ func TestStressBTCDeposit(r *runner.E2ERunner, args []string) {
 	depositAmount := parseFloat(r, args[0])
 	numDeposits := parseInt(r, args[1])
 
-	r.SetBtcAddress(r.Name, false)
-
 	r.Logger.Print("starting stress test of %d deposits", numDeposits)
 
 	// create a wait group to wait for all the deposits to complete
diff --git a/e2e/e2etests/test_stress_btc_withdraw.go b/e2e/e2etests/test_stress_btc_withdraw.go
index 52d60430d2..1c02d17bf0 100644
--- a/e2e/e2etests/test_stress_btc_withdraw.go
+++ b/e2e/e2etests/test_stress_btc_withdraw.go
@@ -22,8 +22,6 @@ func TestStressBTCWithdraw(r *runner.E2ERunner, args []string) {
 	withdrawalAmount := parseFloat(r, args[0])
 	numWithdraws := parseInt(r, args[1])
 
-	r.SetBtcAddress(r.Name, false)
-
 	r.Logger.Print("starting stress test of %d withdraws", numWithdraws)
 
 	// create a wait group to wait for all the withdraws to complete
diff --git a/e2e/runner/accounting.go b/e2e/runner/accounting.go
index c47883c3f0..223ca9c8c4 100644
--- a/e2e/runner/accounting.go
+++ b/e2e/runner/accounting.go
@@ -33,15 +33,20 @@ type Response struct {
 	Amount Amount `json:"amount"`
 }
 
-func (r *E2ERunner) CheckZRC20ReserveAndSupply() error {
-	r.Logger.Info("Checking ZRC20 Reserve and Supply")
-	if err := r.checkEthTSSBalance(); err != nil {
-		return err
-	}
-	if err := r.checkERC20TSSBalance(); err != nil {
-		return err
-	}
-	return r.checkZetaTSSBalance()
+func (r *E2ERunner) CheckZRC20BalanceAndSupply() {
+	r.Logger.Info("Checking ZRC20 Balance vs. Supply")
+
+	err := r.checkEthTSSBalance()
+	require.NoError(r, err, "ETH balance check failed")
+
+	err = r.checkERC20TSSBalance()
+	require.NoError(r, err, "ERC20 balance check failed")
+
+	err = r.checkZetaTSSBalance()
+	require.NoError(r, err, "ZETA balance check failed")
+
+	err = r.CheckBtcTSSBalance()
+	require.NoError(r, err, "BTC balance check failed")
 }
 
 func (r *E2ERunner) checkEthTSSBalance() error {
diff --git a/e2e/runner/balances.go b/e2e/runner/balances.go
index 5def04090f..38ac61d70c 100644
--- a/e2e/runner/balances.go
+++ b/e2e/runner/balances.go
@@ -107,16 +107,7 @@ func (r *E2ERunner) GetAccountBalances(skipBTC bool) (AccountBalances, error) {
 
 // GetBitcoinBalance returns the spendable BTC balance of the BTC address
 func (r *E2ERunner) GetBitcoinBalance() (string, error) {
-	addr, _, err := r.GetBtcAddress()
-	if err != nil {
-		return "", fmt.Errorf("failed to get BTC address: %w", err)
-	}
-
-	address, err := btcutil.DecodeAddress(addr, r.BitcoinParams)
-	if err != nil {
-		return "", fmt.Errorf("failed to decode BTC address: %w", err)
-	}
-
+	address, _ := r.GetBtcAddress()
 	total, err := r.GetBitcoinBalanceByAddress(address)
 	if err != nil {
 		return "", err
diff --git a/e2e/runner/bitcoin.go b/e2e/runner/bitcoin.go
index 047e97139b..bec7a1e907 100644
--- a/e2e/runner/bitcoin.go
+++ b/e2e/runner/bitcoin.go
@@ -14,6 +14,7 @@ import (
 	"github.com/btcsuite/btcd/txscript"
 	"github.com/btcsuite/btcd/wire"
 	"github.com/ethereum/go-ethereum/accounts/abi/bind"
+	"github.com/ethereum/go-ethereum/common"
 	"github.com/rs/zerolog/log"
 	"github.com/stretchr/testify/require"
 
@@ -106,7 +107,7 @@ func (r *E2ERunner) DepositBTCWithAmount(amount float64, memo *memo.InboundMemo)
 	if memo != nil {
 		txHash, err = r.DepositBTCWithStandardMemo(amount, utxos, memo)
 	} else {
-		txHash, err = r.DepositBTCWithLegacyMemo(amount, utxos)
+		txHash, err = r.DepositBTCWithLegacyMemo(amount, utxos, r.EVMAddress())
 	}
 	require.NoError(r, err)
 
@@ -115,8 +116,9 @@ func (r *E2ERunner) DepositBTCWithAmount(amount float64, memo *memo.InboundMemo)
 	return txHash
 }
 
-// DepositBTC deposits BTC on ZetaChain
-func (r *E2ERunner) DepositBTC() {
+// DepositBTC deposits BTC from the Bitcoin node wallet into ZetaChain.
+// Note: This function only works for node wallet based deployer account.
+func (r *E2ERunner) DepositBTC(receiver common.Address) {
 	r.Logger.Print("⏳ depositing BTC into ZEVM")
 	startTime := time.Now()
 	defer func() {
@@ -130,6 +132,7 @@ func (r *E2ERunner) DepositBTC() {
 	spendableAmount := 0.0
 	spendableUTXOs := 0
 	for _, utxo := range utxos {
+		// 'Spendable' indicates whether we have the private keys to spend this output
 		if utxo.Spendable {
 			spendableAmount += utxo.Amount
 			spendableUTXOs++
@@ -142,27 +145,24 @@ func (r *E2ERunner) DepositBTC() {
 	r.Logger.Info("ListUnspent:")
 	r.Logger.Info("  spendableAmount: %f", spendableAmount)
 	r.Logger.Info("  spendableUTXOs: %d", spendableUTXOs)
-	r.Logger.Info("Now sending two txs to TSS address...")
-
-	// send two transactions to the TSS address
-	amount1 := 1.1 + zetabitcoin.DefaultDepositorFee
-	_, err = r.DepositBTCWithLegacyMemo(amount1, utxos[:2])
-	require.NoError(r, err)
+	r.Logger.Info("Now sending two txs to TSS address and tester ZEVM address...")
 
-	amount2 := 0.05 + zetabitcoin.DefaultDepositorFee
-	txHash2, err := r.DepositBTCWithLegacyMemo(amount2, utxos[2:4])
+	// send initial BTC to the tester ZEVM address
+	amount := 1.15 + zetabitcoin.DefaultDepositorFee
+	txHash, err := r.DepositBTCWithLegacyMemo(amount, utxos[:2], receiver)
 	require.NoError(r, err)
 
 	// send a donation to the TSS address to compensate for the funds minted automatically during pool creation
 	// and prevent accounting errors
-	_, err = r.SendToTSSFromDeployerWithMemo(0.11, utxos[4:5], []byte(constant.DonationMessage))
+	// it also serves as gas fee for the TSS to send BTC to other addresses
+	_, err = r.SendToTSSFromDeployerWithMemo(0.11, utxos[2:4], []byte(constant.DonationMessage))
 	require.NoError(r, err)
 
 	r.Logger.Info("testing if the deposit into BTC ZRC20 is successful...")
 
 	cctx := utils.WaitCctxMinedByInboundHash(
 		r.Ctx,
-		txHash2.String(),
+		txHash.String(),
 		r.CctxClient,
 		r.Logger,
 		r.CctxTimeout,
@@ -180,11 +180,12 @@ func (r *E2ERunner) DepositBTC() {
 func (r *E2ERunner) DepositBTCWithLegacyMemo(
 	amount float64,
 	inputUTXOs []btcjson.ListUnspentResult,
+	receiver common.Address,
 ) (*chainhash.Hash, error) {
 	r.Logger.Info("⏳ depositing BTC into ZEVM with legacy memo")
 
 	// payload is not needed for pure deposit
-	memoBytes := r.EVMAddress().Bytes()
+	memoBytes := receiver.Bytes()
 
 	return r.SendToTSSFromDeployerWithMemo(amount, inputUTXOs, memoBytes)
 }
@@ -431,7 +432,7 @@ func (r *E2ERunner) MineBlocksIfLocalBitcoin() func() {
 				_, err := r.GenerateToAddressIfLocalBitcoin(1, r.BTCDeployerAddress)
 				require.NoError(r, err)
 
-				time.Sleep(3 * time.Second)
+				time.Sleep(6 * time.Second)
 			}
 		}
 	}()
diff --git a/e2e/runner/logger.go b/e2e/runner/logger.go
index 24f9c8f7bc..ba8053de60 100644
--- a/e2e/runner/logger.go
+++ b/e2e/runner/logger.go
@@ -15,7 +15,7 @@ import (
 
 const (
 	loggerSeparator = " | "
-	padding         = 10
+	padding         = 12
 )
 
 // Logger is a wrapper around log.Logger that adds verbosity
diff --git a/e2e/runner/require.go b/e2e/runner/require.go
index 9e296bf748..98496c5f25 100644
--- a/e2e/runner/require.go
+++ b/e2e/runner/require.go
@@ -24,8 +24,8 @@ func (r *E2ERunner) EnsureNoTrackers() {
 	require.Empty(r, res.OutboundTracker, "there should be no trackers at the end of the test")
 }
 
-// EnsureZeroBalanceAddressZEVM ensures that the balance of the address is zero in the ZEVM
-func (r *E2ERunner) EnsureZeroBalanceAddressZEVM() {
+// EnsureZeroBalanceAddressZEVM ensures that the balance of the restricted address is zero in the ZEVM
+func (r *E2ERunner) EnsureZeroBalanceOnRestrictedAddressZEVM() {
 	restrictedAddress := ethcommon.HexToAddress(sample.RestrictedEVMAddressTest)
 
 	// ensure ZETA balance is zero
diff --git a/e2e/runner/run.go b/e2e/runner/run.go
index c05129b775..fde3de2277 100644
--- a/e2e/runner/run.go
+++ b/e2e/runner/run.go
@@ -26,11 +26,9 @@ func (r *E2ERunner) RunE2ETest(e2eTest E2ETest, checkAccounting bool) error {
 	}
 	e2eTest.E2ETest(r, args)
 
-	//check supplies
+	// check zrc20 balance vs. supply
 	if checkAccounting {
-		if err := r.CheckZRC20ReserveAndSupply(); err != nil {
-			return err
-		}
+		r.CheckZRC20BalanceAndSupply()
 	}
 
 	r.Logger.Print("✅ completed in %s - %s", time.Since(startTime), e2eTest.Description)
diff --git a/e2e/runner/setup_bitcoin.go b/e2e/runner/setup_bitcoin.go
index 7b4d794f87..88d516e1b7 100644
--- a/e2e/runner/setup_bitcoin.go
+++ b/e2e/runner/setup_bitcoin.go
@@ -26,78 +26,65 @@ func (r *E2ERunner) AddTSSToNode() {
 	require.NoError(r, err)
 }
 
-func (r *E2ERunner) SetupBitcoinAccount(initNetwork bool) {
-	r.Logger.Print("⚙️ setting up Bitcoin account")
+// SetupBitcoinAccounts sets up the TSS account and deployer account
+func (r *E2ERunner) SetupBitcoinAccounts(createWallet bool) {
+	r.Logger.Info("⚙️ setting up Bitcoin account")
 	startTime := time.Now()
 	defer func() {
 		r.Logger.Print("✅ Bitcoin account setup in %s", time.Since(startTime))
 	}()
 
-	_, err := r.BtcRPCClient.CreateWallet(r.Name, rpcclient.WithCreateWalletBlank())
-	if err != nil {
-		require.ErrorContains(r, err, "Database already exists")
-	}
-
-	r.SetBtcAddress(r.Name, true)
-
-	if initNetwork {
-		// import the TSS address
-		err = r.BtcRPCClient.ImportAddress(r.BTCTSSAddress.EncodeAddress())
-		require.NoError(r, err)
+	// setup deployer address
+	r.SetupBtcAddress(r.Name, createWallet)
 
-		// mine some blocks to get some BTC into the deployer address
-		_, err = r.GenerateToAddressIfLocalBitcoin(101, r.BTCDeployerAddress)
-		require.NoError(r, err)
+	// import the TSS address to index TSS utxos and transactions
+	err := r.BtcRPCClient.ImportAddress(r.BTCTSSAddress.EncodeAddress())
+	require.NoError(r, err)
+	r.Logger.Info("⚙️ imported BTC TSSAddress: %s", r.BTCTSSAddress.EncodeAddress())
 
-		_, err = r.GenerateToAddressIfLocalBitcoin(4, r.BTCDeployerAddress)
-		require.NoError(r, err)
-	}
+	// import deployer address to index deployer utxos and transactions
+	err = r.BtcRPCClient.ImportAddress(r.BTCDeployerAddress.EncodeAddress())
+	require.NoError(r, err)
+	r.Logger.Info("⚙️ imported BTCDeployerAddress: %s", r.BTCDeployerAddress.EncodeAddress())
 }
 
-// GetBtcAddress returns the BTC address of the deployer from its EVM private key
-func (r *E2ERunner) GetBtcAddress() (string, string, error) {
+// GetBtcAddress returns the BTC address of the deployer and private key in WIF format
+func (r *E2ERunner) GetBtcAddress() (*btcutil.AddressWitnessPubKeyHash, *btcutil.WIF) {
+	// load configured private key
 	skBytes, err := hex.DecodeString(r.Account.RawPrivateKey.String())
-	if err != nil {
-		return "", "", err
-	}
+	require.NoError(r, err)
 
+	// create private key in WIF format
 	sk, _ := btcec.PrivKeyFromBytes(skBytes)
 	privkeyWIF, err := btcutil.NewWIF(sk, r.BitcoinParams, true)
-	if err != nil {
-		return "", "", err
-	}
+	require.NoError(r, err)
 
+	// derive address from private key
 	address, err := btcutil.NewAddressWitnessPubKeyHash(
 		btcutil.Hash160(privkeyWIF.SerializePubKey()),
 		r.BitcoinParams,
 	)
-	if err != nil {
-		return "", "", err
-	}
+	require.NoError(r, err)
 
-	// return the string representation of the address
-	return address.EncodeAddress(), privkeyWIF.String(), nil
+	return address, privkeyWIF
 }
 
-// SetBtcAddress imports the deployer's private key into the Bitcoin node
-func (r *E2ERunner) SetBtcAddress(name string, rescan bool) {
-	skBytes, err := hex.DecodeString(r.Account.RawPrivateKey.String())
-	require.NoError(r, err)
+// SetupBtcAddress setups the deployer Bitcoin address
+func (r *E2ERunner) SetupBtcAddress(name string, setupWallet bool) {
+	// set the deployer address
+	address, privkeyWIF := r.GetBtcAddress()
+	r.BTCDeployerAddress = address
 
-	sk, _ := btcec.PrivKeyFromBytes(skBytes)
-	privkeyWIF, err := btcutil.NewWIF(sk, r.BitcoinParams, true)
-	require.NoError(r, err)
+	r.Logger.Info("BTCDeployerAddress: %s, %v", r.BTCDeployerAddress.EncodeAddress(), setupWallet)
 
-	if rescan {
-		err := r.BtcRPCClient.ImportPrivKeyRescan(privkeyWIF, name, true)
+	// import the deployer private key as a Bitcoin node wallet
+	if setupWallet {
+		_, err := r.BtcRPCClient.CreateWallet(r.Name, rpcclient.WithCreateWalletBlank())
+		if err != nil {
+			require.ErrorContains(r, err, "Database already exists")
+		}
+
+		err = r.BtcRPCClient.ImportPrivKeyRescan(privkeyWIF, name, true)
 		require.NoError(r, err, "failed to execute ImportPrivKeyRescan")
 	}
-
-	r.BTCDeployerAddress, err = btcutil.NewAddressWitnessPubKeyHash(
-		btcutil.Hash160(privkeyWIF.PrivKey.PubKey().SerializeCompressed()),
-		r.BitcoinParams,
-	)
-	require.NoError(r, err)
-
-	r.Logger.Info("BTCDeployerAddress: %s", r.BTCDeployerAddress.EncodeAddress())
 }
diff --git a/x/observer/types/chain_params.go b/x/observer/types/chain_params.go
index b1a5335e58..b76af2da49 100644
--- a/x/observer/types/chain_params.go
+++ b/x/observer/types/chain_params.go
@@ -290,7 +290,7 @@ func GetDefaultBtcRegtestChainParams() *ChainParams {
 		WatchUtxoTicker:             1,
 		InboundTicker:               1,
 		OutboundTicker:              2,
-		OutboundScheduleInterval:    2,
+		OutboundScheduleInterval:    1,
 		OutboundScheduleLookahead:   5,
 		BallotThreshold:             DefaultBallotThreshold,
 		MinObserverDelegation:       DefaultMinObserverDelegation,