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Bearish Signal? Bitcoin Whale Wakes Up From 6-Year Slumber And Transfers $56 Million

Movement of dormant Bitcoin addresses has been sporadic this year, with most causing a stir and rising interest amongst the Bitcoin community. In the latest record of whale transactions this year, on-chain data has shown that a set of dormant Bitcoin from 2017 has moved for the first time in six years. 

Peckshield, a blockchain security and data analytics firm, revealed in a tweet that the previously inactive address, which held 2,100 BTC has just become active, with its assets now transferred to a different address. 

Whale Wakes Up From Slumber, Moves $56 Million

According to data from BitInfoCharts, this Bitcoin address initially had its first Bitcoin transaction of 2099.99 BTC on October 10, 2019. At the time, Bitcoin was trading at $5,618, putting the total value of the transaction at $11.79 million. Bitcoin has grown substantially since then, with a unit now going for $27,140 at the time of writing.

The cumulative balance in the wallet address has experienced a significant increase to $56.3 million at the point of transfer, indicating a substantial profit of $44.5 million. However, on-chain data shows that the worth of these holdings reached $121 million during the crypto market bull run in 2021. 

Bearish Signal?

The whale transfer in question appears to have added an air of mystery and excitement to an otherwise dull week of Bitcoin. When a large amount of BTC suddenly moves, it can spark interest from other traders, causing temporary price fluctuations, especially when they are sold off. 

BTC price clears $27,000 resistance | Source: BTCUSD on Tradingview.com

It is currently unclear the motive behind the transfer of these coins, as the owner could be gearing up for a selloff or transfer into a safer wallet. This move could be bearish, though, if they decided to sell all of their holdings. 

It could introduce a fair amount of selling pressure on Bitcoin and cause the price to drop, at least temporarily. However, on-chain data shows that the 2,100 BTC are still held in a private address, “1LGnp”, showing they are probably still in self-custody. 

Bitcoin Worth $24.88M Resurfaces from 2012 Wallets

In another series of transactions this week, a set of dormant Bitcoin from 2012 has moved for the first time in 11 years. The Bitcoin cache, which total $24.88 million in today’s BTC price, was moved in five transactions, making it unclear if they belonged to one person. However, findings from on-chain data show a higher chance of them belonging to one entity due to their acquisition dates. 

Similarly, one of the earliest Bitcoin wallets holding 1,005 BTC was awakened last month. These cryptocurrencies were acquired for less than $1 each in 2010, during the first year of Bitcoin’s creation.

Featured image from CryptoSlate, chart from Tradingview.com



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