diff --git a/changelog.md b/changelog.md
index 724979f970..1ddeb6c4ee 100644
--- a/changelog.md
+++ b/changelog.md
@@ -29,6 +29,7 @@
 * [1791](https://github.com/zeta-chain/node/pull/1791) - add e2e tests for feature of restricted address
 * [1787](https://github.com/zeta-chain/node/pull/1787) - add unit tests for cross-chain evm hooks and e2e test failed withdraw to BTC legacy address
 * [1840](https://github.com/zeta-chain/node/pull/1840) - fix code coverage test failures ignored in CI
+* [1868](https://github.com/zeta-chain/node/pull/1868) - run e2e btc tests locally
 * [1851](https://github.com/zeta-chain/node/pull/1851) - rename usdt to erc20 in e2e tests
 * [1872](https://github.com/zeta-chain/node/pull/1872) - remove usage of RPC in unit test
 * [1805](https://github.com/zeta-chain/node/pull/1805) - add admin and performance test and fix upgrade test
diff --git a/cmd/zetae2e/README.md b/cmd/zetae2e/README.md
index ccda53caf6..c57863e7cf 100644
--- a/cmd/zetae2e/README.md
+++ b/cmd/zetae2e/README.md
@@ -57,16 +57,14 @@ contracts:
 ### Bitcoin setup
 Interaction with the Bitcoin node will require setting up a specific node tracking the address. It can be set locally following the guide [Using Bitcoin Docker Image for Local Development](https://www.notion.so/Using-Bitcoin-Docker-Image-for-Local-Development-bf7e84c58f22431fb52f17a471997e1f?pvs=21) 
 
-If an error occurs mention that wallets are not loaded. The following commands might need to be run in the Docker container:
+If an error occurs mention that wallets are not loaded, this command can be run to set it up:
 
 ```go
-docker exec -it <container> bash
-
-bitcoin-cli -testnet -rpcuser=${bitcoin_username} -rpcpassword=${bitcoin_password} -named createwallet wallet_name=${WALLET_NAME} disable_private_keys=false load_on_startup=true
-bitcoin-cli -testnet -rpcuser=${bitcoin_username} -rpcpassword=${bitcoin_password} importaddress "${WALLET_ADDRESS}" "${WALLET_NAME}" true
-bitcoin-cli -testnet -rpcuser=${bitcoin_username} -rpcpassword=${bitcoin_password} importprivkey "your_private_key" "${WALLET_NAME}" false
+zetae2e setup-bitcoin [config]
 ```
 
+Note: This command is intended for local testing only and won't work on live networks, where a node with an enabled wallet should already be set up.
+
 ### Commands
 
 Show the balances of the accounts used on the different networks:
diff --git a/cmd/zetae2e/root.go b/cmd/zetae2e/root.go
index ba82430a45..4568358512 100644
--- a/cmd/zetae2e/root.go
+++ b/cmd/zetae2e/root.go
@@ -27,6 +27,7 @@ func NewRootCmd() *cobra.Command {
 		local.NewLocalCmd(),
 		NewStressTestCmd(),
 		NewInitCmd(),
+		NewSetupBitcoinCmd(),
 	)
 
 	return cmd
diff --git a/cmd/zetae2e/setup_bitcoin.go b/cmd/zetae2e/setup_bitcoin.go
new file mode 100644
index 0000000000..4de6b0685d
--- /dev/null
+++ b/cmd/zetae2e/setup_bitcoin.go
@@ -0,0 +1,77 @@
+package main
+
+import (
+	"context"
+	"errors"
+
+	ethcommon "github.com/ethereum/go-ethereum/common"
+	"github.com/fatih/color"
+	"github.com/spf13/cobra"
+	"github.com/zeta-chain/zetacore/app"
+	zetae2econfig "github.com/zeta-chain/zetacore/cmd/zetae2e/config"
+	"github.com/zeta-chain/zetacore/e2e/config"
+	"github.com/zeta-chain/zetacore/e2e/runner"
+	"github.com/zeta-chain/zetacore/e2e/utils"
+)
+
+// NewSetupBitcoinCmd sets up bitcoin wallet for e2e tests
+// should be run in case bitcoin e2e tests return load wallet errors
+func NewSetupBitcoinCmd() *cobra.Command {
+	cmd := &cobra.Command{
+		Use:   "setup-bitcoin [config-file] ",
+		Short: "Setup Bitcoin wallet for e2e tests",
+		RunE:  runSetupBitcoin,
+		Args:  cobra.ExactArgs(1),
+	}
+	return cmd
+}
+
+func runSetupBitcoin(_ *cobra.Command, args []string) error {
+	// read the config file
+	conf, err := config.ReadConfig(args[0])
+	if err != nil {
+		return err
+	}
+
+	// initialize logger
+	logger := runner.NewLogger(false, color.FgHiYellow, "")
+
+	// set config
+	app.SetConfig()
+
+	// initialize context
+	ctx, cancel := context.WithCancel(context.Background())
+
+	// get EVM address from config
+	evmAddr := conf.Accounts.EVMAddress
+	if !ethcommon.IsHexAddress(evmAddr) {
+		cancel()
+		return errors.New("invalid EVM address")
+	}
+	// initialize deployer runner with config
+	r, err := zetae2econfig.RunnerFromConfig(
+		ctx,
+		"e2e",
+		cancel,
+		conf,
+		ethcommon.HexToAddress(evmAddr),
+		conf.Accounts.EVMPrivKey,
+		utils.FungibleAdminName, // placeholder value, not used
+		FungibleAdminMnemonic,   // placeholder value, not used
+		logger,
+	)
+	if err != nil {
+		cancel()
+		return err
+	}
+
+	if err := r.SetTSSAddresses(); err != nil {
+		return err
+	}
+
+	r.SetupBitcoinAccount(true)
+
+	logger.Print("* BTC setup done")
+
+	return nil
+}
diff --git a/contrib/localnet/docker-compose.yml b/contrib/localnet/docker-compose.yml
index bce13ad09f..52ce7d2124 100644
--- a/contrib/localnet/docker-compose.yml
+++ b/contrib/localnet/docker-compose.yml
@@ -119,7 +119,7 @@ services:
     command:
       -printtoconsole
       -regtest=1
-      -rpcallowip=172.20.0.0/16
+      -rpcallowip=0.0.0.0/0
       -rpcbind=0.0.0.0
       -rpcauth=smoketest:63acf9b8dccecce914d85ff8c044b78b$$5892f9bbc84f4364e79f0970039f88bdd823f168d4acc76099ab97b14a766a99
       -txindex=1
diff --git a/e2e/e2etests/test_bitcoin_withdraw.go b/e2e/e2etests/test_bitcoin_withdraw.go
index 7a82f4382d..edd779b595 100644
--- a/e2e/e2etests/test_bitcoin_withdraw.go
+++ b/e2e/e2etests/test_bitcoin_withdraw.go
@@ -30,6 +30,8 @@ func TestBitcoinWithdraw(r *runner.E2ERunner, args []string) {
 	}
 	amount := big.NewInt(int64(withdrawalAmountSat))
 
+	r.SetBtcAddress(r.Name, false)
+
 	WithdrawBitcoin(r, amount)
 }
 
@@ -49,6 +51,8 @@ func TestBitcoinWithdrawRestricted(r *runner.E2ERunner, args []string) {
 	}
 	amount := big.NewInt(int64(withdrawalAmountSat))
 
+	r.SetBtcAddress(r.Name, false)
+
 	WithdrawBitcoinRestricted(r, amount)
 }
 
diff --git a/e2e/e2etests/test_bitcoin_withdraw_invalid.go b/e2e/e2etests/test_bitcoin_withdraw_invalid.go
index 4c529bf8ac..d168826493 100644
--- a/e2e/e2etests/test_bitcoin_withdraw_invalid.go
+++ b/e2e/e2etests/test_bitcoin_withdraw_invalid.go
@@ -26,6 +26,8 @@ func TestBitcoinWithdrawToInvalidAddress(r *runner.E2ERunner, args []string) {
 	}
 	amount := big.NewInt(int64(withdrawalAmountSat))
 
+	r.SetBtcAddress(r.Name, false)
+
 	WithdrawToInvalidAddress(r, amount)
 }
 
diff --git a/e2e/e2etests/test_stress_btc_withdraw.go b/e2e/e2etests/test_stress_btc_withdraw.go
index ea4465b52d..dc7579e877 100644
--- a/e2e/e2etests/test_stress_btc_withdraw.go
+++ b/e2e/e2etests/test_stress_btc_withdraw.go
@@ -30,6 +30,8 @@ func TestStressBTCWithdraw(r *runner.E2ERunner, args []string) {
 		panic("Invalid number of withdrawals specified for TestStressBTCWithdraw.")
 	}
 
+	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/runner.go b/e2e/runner/runner.go
index 3b7ba5136e..06b123c12f 100644
--- a/e2e/runner/runner.go
+++ b/e2e/runner/runner.go
@@ -450,7 +450,7 @@ func (runner *E2ERunner) PrintContractAddresses() {
 	runner.Logger.Print(" --- 📜zEVM contracts ---")
 	runner.Logger.Print("SystemContract: %s", runner.SystemContractAddr.Hex())
 	runner.Logger.Print("ETHZRC20:       %s", runner.ETHZRC20Addr.Hex())
-	runner.Logger.Print("ERC20ZRC20:      %s", runner.ERC20ZRC20Addr.Hex())
+	runner.Logger.Print("ERC20ZRC20:     %s", runner.ERC20ZRC20Addr.Hex())
 	runner.Logger.Print("BTCZRC20:       %s", runner.BTCZRC20Addr.Hex())
 	runner.Logger.Print("UniswapFactory: %s", runner.UniswapV2FactoryAddr.Hex())
 	runner.Logger.Print("UniswapRouter:  %s", runner.UniswapV2RouterAddr.Hex())