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Bitcoin Alert: $137 Million Moved By Long-Sleeping Whale, Market Braces For Impact
Recently, the crypto community witnessed a notable event as a dormant Bitcoin whale, inactive for nearly four years, returned to the market.
According to data from the crypto analytics platform Lookonchain, this enigmatic entity transferred 3,623 BTC, worth roughly 6.94 million, to two newly created wallets.
Market Speculations And Potential Impact
This mysterious investor initially accumulated their Bitcoin holdings at an average cost of ,889 per unit from October 25, 2018, to December 31, 2019. Initially, the total investment stood at approximately .96 million.
However, at present market conditions, this investment has grown significantly and is now estimated to yield around 2 million in profits.
The transaction’s significance extends beyond its sheer magnitude. It is particularly noteworthy for its timing, aligning with Bitcoin’s recent surge to a peak price not seen since May of the previous year, reaching around ,400 per Bitcoin.
A whale that had been dormant for ~4 years transferred all 3,623 $BTC(6.94M) to 2 new wallets 1 hour ago.
This whale accumulated 3,623 $BTC(.96M) at ~,889 from Oct 25, 2018 to Dec 31, 2019.
At current prices, the profit is ~2M.https://t.co/QL3fPiV900 pic.twitter.com/wrMe4loIwm
— Lookonchain (@lookonchain) November 30, 2023
The sudden activity of this substantial Bitcoin holder has sparked speculation and discussions within the crypto community. On the X platform, a user pointed out the timing of the whale’s movement as it coincides with Bitcoin’s recent rally to a significant high.
This observation has led to conjectures about the whale’s potential insider knowledge or strategic market insights, especially considering the substantial profit they are currently sitting on.
Notably, the actions of large-scale holders, often dubbed ‘whales,’ can exert considerable influence on the crypto market. A transaction of this magnitude could signal various strategic moves, ranging from portfolio restructuring to preparing for a market exit.
Such movements are closely monitored as they can provide insights into market sentiment and potential trends.
A Closer Look At The Bitcoin Whale’s Strategy
Delving deeper into the whale’s investment strategy reveals a calculated approach to Bitcoin accumulation. The purchase of Bitcoin at an average cost of ,889 per BTC during the 2018-2019 period indicates a strategic entry during a time when the market was relatively bearish.
The subsequent hold for four years through various market cycles underscores a long-term investment mindset, contrasting with the short-term trading strategies often seen in the crypto space.
The recent awakening of this whale and the transfer of a significant portion of their holdings to new wallets might indicate a shift in strategy. While it’s speculative to predict the whale’s next move, this could involve cashing out on some of their investments or redistributing assets for diversification.
It’s also plausible that the whale is positioning for new investment opportunities within the crypto space, potentially in sectors such as decentralized finance (DeFi) or non-fungible tokens (NFTs).
Regardless, Bitcoin is currently in a downtrend following its climb above ,000 yesterday. The asset now trades at ,704, at the time of writing, down by 0.4%.
Featured image from Unsplash, Chart from TradingView
Bitcoin Price At Risk? Whale Transfers $137 Million In BTC After 3-Year Dormancy
Whales are some of the most relevant entities in the Bitcoin market because of their potential influence on the Bitcoin price through large-volume transactions. Investors and traders often look out for whale transactions, which can trigger a domino effect on the market.
In one of such developments, recent on-chain data revealed that a particular whale has woken up from a three-year slumber, moving their BTC for the first time since 2020.
Whale Becomes Active For The First Time In Three Years
According to data from blockchain analytics platform Arkham Intelligence, a particular Bitcoin whale became active after years of dormancy and transferred out 5,000 BTC (worth around 7 million) on Saturday, October 7.
The whale address initially received the 5,000 BTC from “Poolin mining pool” on June 23, 2020. At the time, the Bitcoin price was around ,700, putting the total value of the transaction at approximately .5 million.
The Bitcoin price has experienced significant growth since 2020, with one BTC trading for ,903 as of this writing. Consequently, the whale address’ holdings had swelled to approximately 7 million when all 5,000 BTC was moved on Saturday.
On-chain data shows that this whale split and transferred the 5,000 to two separate addresses. Some 4,000 BTC were transferred to one address, and 1,000 BTC were sent to the other address, both of which are new and unmarked.
A Threat To Bitcoin Price?
This latest whale action seems to be provoking a sense of caution in the Bitcoin market. This is no surprise, considering that the movement of a large BTC amount (especially a sell-off) often sparks interest or fear in other investors, leading to momentary price fluctuations.
Nevertheless, it is worth noting that the reason behind this whale transfer is currently not known. It remains to be seen whether the owner wants to sell or just move their assets into another wallet.
If the whale intends to sell off all their BTC holdings, then this latest action could potentially threaten the Bitcoin price. Large-scale selling could negatively impact Bitcoin’s value, as it often puts downward pressure on the cryptocurrency and could trigger a temporary price dip.
It may be worth mentioning that the Bitcoin price has not experienced any significant or abrupt changes in the past 24 hours. According to CoinGecko data, the value of BTC has dipped by 0.1% in the past day.
Bitcoin has made a relatively healthy start to October, with the premier cryptocurrency recording a 3.3% price gain since the start of the month. The BTC price has been moving mostly sideways in the past few days as it looks to break through the ,000 mark.