A Bitcoin wallet that has been stagnant for years has re-emerged after a delay of nearly six years, moving 8,000 BTC worth about $535.64 million.
The wallet, which dates back to mid-2018, transferred its holdings to several addresses, including Binance deposits, when BTC collapsed.
Dormant Bitcoin Wallets Moved $535 Million in 2018
Early in the US session on June 11, a dormant wallet moved its first transaction after 5.5 years of inactivity. According to Akrham data, the wallet address transferred 8,000 BTC from Coinbase cold storage. The value of the transferred assets was $535.64 million at press time.
Dormant Bitcoin wallets, addresses that have been inactive for long periods of time, can cause turmoil if they suddenly become active, especially for large transfers. Analysts often view these moves as bearish indicators, suggesting that large holders or whales are cashing out their holdings.
More interestingly, as the price of BTC plummeted, dormant wallets became active and are now down nearly 5%. This market turmoil resulted in liquidations totaling over $255 million across cryptocurrency markets, of which $235 million were long positions.
Read more: Who will own the most Bitcoin in 2024?
According to CryptoQuant data, the average Bitcoin dormancy on June 10 was 9.3098. This indicator shows the average number of days to destruction for a moved coin, which can increase when long-term holders move or sell their coins, indicating a potential price drop.
On May 21, a Bitcoin wallet that had been dormant since 2013 was reactivated, transferring $7.6 million worth of BTC after nearly 11 years of inactivity. As you can see in the chart, this transaction coincided with a decline in the price of Bitcoin into the $70,000 to $67,000 range. It is clear that when large holders move their holdings to exchanges, it often causes price fluctuations, which generally favor the downside.
Read more: Bitcoin (BTC) price prediction for 2024/2025/2030
However, some experts, including Javier Bastardo, Bitcoin Ambassador at Bitfinex, challenge this assumption. He recently stated that the activity of dormant Bitcoin whales will not have a significant impact on the market.
“I don’t think this is a significant move that will or will affect the price of BTC. However, it is important for users to understand that there are quite a few long-term investors ready to hold BTC positions for years,” Bastardo told BeInCrypto.
As of this writing, Bitcoin is trading at $66,449, down nearly 5% in the last 24 hours.
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