Dormant Bitcoin Caches Come Alive, Stirring Market Interest
On Wednesday, a significant amount of Bitcoin (BTC/USD) that had been inactive since 2012 suddenly became active, marking a noteworthy event in the cryptocurrency world. The dormant Bitcoin, which saw an extraordinary appreciation of over 240,000%, was moved through a series of transactions.
In the latest record of whale transactions this year, on-chain data revealed that a set of dormant Bitcoin from 2017 also moved for the first time in six years. Blockchain security and data analytics firm Peckshield reported that the previously inactive address, which held 2,100 BTC, has now become active, with its assets transferred to a different address.
The Bitcoin from 2012 was acquired by an entity, potentially a single whale investor, on Valentine’s Day when Bitcoin was trading for just $7.15. In total, $24.48 million worth of BTC were moved from the address through five transactions. The transactions were made from different wallet addresses and involved varying amounts of BTC.
Meanwhile, the Bitcoin address that woke up from dormancy since 2017 initially had its first Bitcoin transaction of 2099.99 BTC on October 10, 2019. The cumulative balance in the wallet address experienced a significant increase to $56.3 million at the point of transfer, indicating a substantial profit of $44.5 million.
Crypto whales are individuals or entities who hold a large amount of cryptocurrency. Their transactions can influence liquidity and create volatility in the market, making them significant players in the cryptocurrency world. Traders and investors closely watch these whales as their actions can offer insights into market sentiment and potential price movements.
At the time of writing on Wednesday, BTC was trading at $27,236, up 1.23% in the last 24 hours.
While it remains uncertain if these recent transactions are signaling a potential sell-off or merely a transfer into a safer wallet, the movements have certainly stirred interest and speculation among the Bitcoin community. However, on-chain data shows that the 2,100 BTC are still held in a private address, indicating they are likely still in self-custody.
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