In a crypto saga that has captured the imagination of many, two Bitcoin wallets containing a combined 1,000 BTC have suddenly become active after lying dormant for nearly 11 years.
Data from blockchain analytics firm Lookonchain reveals these “ancient whale” wallets moved their entire holdings, worth over $60 million at current prices, to new wallet addresses in separate transactions.
TLDR
- Two ancient Bitcoin wallets that were dormant for nearly 11 years have suddenly become active and moved a combined 1,000 BTC worth over $60 million.
- One wallet had purchased 500 BTC for $62,000 when BTC was $124 in January 2014, realizing a 500x gain.
- It’s unclear if the wallets were moved to sell the BTC or transfer to new cold wallets, possibly using OTC to avoid impacting markets.
- This activity coincides with declining Bitcoin on-chain metrics like active addresses, transaction volume, and whale transactions nearing historic lows.
- Despite the price being around $61,000, the Bitcoin Fear and Greed Index was in “Greed” territory at 56, suggesting potential for a price reversal.
One of the wallets had originally purchased its 500 BTC for just $62,000 back in January 2014 when Bitcoin was trading around $124.
With BTC currently hovering around $61,000, this represents an astounding 500x return on investment for this particularly patient whale over the nearly decade-long holding period.
The sudden movement of such a large amount of long-untouched Bitcoin has naturally prompted speculation about the whales’ motives.
Some believe they could be cashing out and selling on over-the-counter (OTC) desks to avoid crashing the market with such a large sell order on exchanges.
Others think they may simply be moving the coins to new secure cold wallets, still hodling for the long-term.
What makes the situation even more intriguing is the timing of this activity relative to recent on-chain data trends for Bitcoin.
According to crypto analytics firm Santiment, several key BTC metrics like daily active addresses, transaction volumes, and whale transactions (transfers over $1 million) are all declining from their February peaks and nearing historic lows.
This could potentially indicate lowered demand and a lack of confidence in Bitcoin’s near-term trajectory. Further, despite BTC trading flatly around $61,000 as of late, the Bitcoin Fear and Greed Index, which measures overall market sentiment, is registering in the “Greed” zone at 56 – often a signal that downside risk is increasing.
With major ancient wallet movements, coupled with fading momentum on multiple on-chain fronts even as prices remain high, some analysts believe this could foreshadow an impending bearish shift for Bitcoin in the weeks ahead.
The cryptocurrency world watches with bated breath to see if these formerly dormant whales were taking profits ahead of a reversal or simply reorganizing for the long haul.
Of course, the highly unpredictable and volatile nature of crypto means BTC could just as easily defy expectations and continue climbing.
But this unusual sequence of events has certainly captured the community’s attention as a potential pivotal moment. Only time will tell if it was indeed the catalyst for changing winds in the crypto market’s direction.
