Dormant Bitcoin Giant Stirs Initiating a 69 Million Transaction
During a month that has been historically positive for Bitcoin, dormant addresses are suddenly coming to life, even as the cryptocurrency market experiences a downturn. One Bitcoin address, which had been inactive for 12 years, recently transferred 119 tokens worth $6.9 million. This address had last made a transfer in February 2012, when the value of the wallet was only $600, and it moved 2.98 BTC worth $15 at the time.
The recent transactions were split into two parts, with the first transferring 76 BTC and the second transferring 43 BTC. Large holders of cryptocurrencies, known as whales, often attract attention when they become active in the market. These entities possess significant amounts of cryptocurrency, potentially influencing market prices and sentiments. However, since the user behind this address remains anonymous, the reason for these recent transactions remains unclear. Nonetheless, the fact that both transfers were sent to a single new wallet suggests that the user is consolidating their holdings into a fresh address.
This is not the first time dormant Bitcoin addresses have shown activity this year. In May, a whale sent $43 million in cryptocurrency to another wallet after a decade of inactivity. Another whale, just a week later, sent 1,000 BTC valued at around $60 million.
In addition to the awakening of dormant wallets, there is also one whale that is liquidating its holdings on a large scale, albeit at a loss. LookOnChain reported that this particular whale deposited 3,500 BTC, equivalent to $206 million, onto Binance within a span of five hours. Typically, whales move their tokens to centralized exchanges in order to sell them on the open market. According to data providers, this whale sold its Bitcoin at a loss of $20 million and has been depositing on exchanges for several weeks now.
Meanwhile, Bitcoin itself has experienced a decline in market value, dropping over 5% and falling below $57,500 for the first time since April. This decline coincided with a shift in the crypto “fear & greed” index from greed to fear, as depicted on alternative.me.
For more information, you can read about Peter Schiff’s view on the critical support of Bitcoin’s price.
