After eleven years of inactivity, an early Bitcoin (BTC) holder transferred $37 million worth of the cryptocurrency to new wallets, igniting speculation about the motivation behind this move. This transfer of tokens to new wallets is part of a growing trend among early buyers and holders who have been inactive for several years.
Dormant Bitcoin Whales Continue to Reawaken
An influential holder of bitcoin, known as a “whale,” transferred all 1,037.42 of their bitcoin to a new address “bc1qtl” early on Wednesday. According to on-chain analytics firm Lookonchain, the whale originally received 1,037.42 BTC on April 11, 2012, when the price was $4.92, and the total value was $5,107.
A BTC whale that has been dormant for 11 years transferred all 1,037.42 $BTC($37.8M) to a new address"bc1qtl" an hour ago.
The whale received 1,037.42 $BTC($5,107 at that time) on Apr 11, 2012, when the price was $4.92.https://t.co/k8ZmO5vc8X pic.twitter.com/xBaw2dQfY8
— Lookonchain (@lookonchain) July 22, 2023
Large transfers of tokens by early participants in the cryptocurrency market are not common. This particular movement could indicate that the holder is planning to sell their tokens, stake them on an exchange, or diversify their holdings by acquiring other tokens.
This transfer is the most recent in a series of movements this year where old wallets have transferred tokens, such as bitcoin (BTC) or ether (ETH), to exchanges or other wallets. In April, at least four wallets moved millions of dollars worth of Bitcoin to exchanges or other wallets.
Eight years ago, during the first coin offering (ICO), a wallet that had purchased over 61,000 ether (ETH) transferred the entire amount to a wallet linked to the Kraken cryptocurrency exchange. At current prices, those holdings are valued at over $116 million, having been purchased for just 31 cents per token during the ICO.
In conclusion, the movement of $37 million worth of Bitcoin from an old wallet is a rare and significant event that may have implications for the market. The intention of the holder is unknown, but it could indicate a change in their strategy or sentiment. This could also trigger other early holders to move their coins, creating more volatility and uncertainty.
