While bitcoin’s price was at ,382 on July 3, it dropped significantly to ,550 two days later before rebounding back to ,642 by 12:50 p.m. EDT on July 5. Notably, nine dormant bitcoin wallets created in 2013, 2016, and 2017 became active on Friday, moving 133.41 BTC valued at .5 million. The initial three wallets, […]
Bitcoin News
This Dormant Bitcoin Wallet Holding $6.8 Million BTC Just Reactivated, Are They Selling?
Bitcoin has recently been plagued with massive selling pressure, with different entities looking to offload their holdings. This time, on-chain data shows a dormant Bitcoin wallet that transferred over .8 million in Bitcoin, suggesting that this whale may also be looking to sell their tokens.
Dormant Bitcoin Wallet Transfers Funds For First Time In 12 Years
On-chain data shows that a Bitcoin wallet (1Nxxi) that had been dormant for 12 years transferred funds for the first time on July 4. The wallet contained .8 million worth of Bitcoin, with all these funds moved in two separate transactions. 76 BTC (.46 million) was initially sent from the wallet to an unknown address (3Ctd5), and 43 BTC (.46 million) was sent in the second transaction to the same unknown address.
The last outflow from this address came in 2012 when 2.98 BTC was sent to an unknown address. These recent transactions have raised concerns for the crypto community because they suggest that the whale in question may be looking to offload its holdings. They also come at a time when Bitcoin is facing significant selling pressure.
As such, a sale of such magnitude could compound Bitcoin’s problems and lead to further declines for the flagship crypto. However, on-chain data shows that the 119 BTC that was transferred is still intact in the unknown address (3Ctd5) to which it was sent. This is undoubtedly a relief for the crypto community since these tokens would have long been sent to an exchange if this whale was looking to offload their holdings.
In the meantime, Bitcoin is still facing intense selling pressure from other entities, including the German government. On-chain analytics platform Arkham Intelligence revealed that the German government is selling up to 5 million worth of Bitcoin. In the last 24 hours, they have moved 1,300 BTC ( million) to Kraken, Bitstamp, and Coinbase.
They also transferred 1,700 BTC ( million) to an unknown address (139Po). Arkham claimed that the funds to this unknown address are likely deposits for an institutional service or OTC.
Mt. Gox Begins Repayments To Creditors
Defunct crypto exchange Mt. Gox recently announced that it has begun repayments to its creditors. The rehabilitation trustee for the crypto exchange is said to have already made Bitcoin repayments to some rehabilitation creditors through designated crypto exchanges.
This news is significant as it is set to pile more selling pressure on the flagship crypto, with some of these creditors likely to liquidate their holdings upon receipt of their repayment. Mt. Gox is expected to pay its creditors up to billion worth of crypto, with Bitcoin accounting for most of these tokens.
At the time of writing, Bitcoin is trading at around ,300, down over 7% in the last 24 hours, according to data from CoinMarketCap.
Dormant Bitcoin Wallets From 2010-2017 Transfer $294M in June
Long-time bitcoin holders moved a total of 4,681.438 BTC, worth 4 million, from dormant wallets dating from 2010 to 2017. The most significant activity was from addresses created in 2016, with 2,442.302 BTC exchanged across 14 transactions. 4,681 BTC Moved From Long-Inactive Wallets While BTC faced considerable fluctuations in June, bitcoins from long-inactive wallets transacted […]
Bitcoin News
Bitcoin ‘Zombies’ Awaken: Dormant Coins Move For First Time In Years, What’s Going On?
According to recent data from on-chain analytics platform CryptoQuant, in recent weeks, the Bitcoin market has witnessed a fascinating phenomenon: long-dormant BTC, untouched in wallets for up to a decade, are suddenly springing into action.
This movement coincides with Bitcoin’s price once again reclaiming the ,000 mark, a dynamic that has not only captured the attention of investors but also sparked analysis from on-chain analytics experts.
Revival Of The Sleeping Giants
The data revealed by CryptoQuant illuminates a surprising trend: on June 2 alone, roughly 2,800 BTC that had been idle for two to three years were transferred. The following day, a movement of 4,500 BTC, dormant for four to five years, outstripped this.
The activity didn’t stop there; even BTC that had not moved for over a decade—210 BTC, to be precise—changed hands. This phenomenon, referred to as “old coins moving” by a CryptoQuant author, Maartunn, suggests an “allocation” phase, where long-term holders begin to release their coins back into circulation.
Particularly, according to Maartunn, old coins moving indicates a potential shift from holding to “distribution,” a sign often seen in mature bull markets. This resurgence of old BTC is notable, as it aligns with historical price peaks, including BTC’s previous rally to a new peak in March.
And another 2,123 $BTC with the same age.
Old coins moving, after old coins moving, after old coins moving.
In other words, distribution.
https://t.co/BBg4e9pNoz https://t.co/zXtjrZ78Y6 pic.twitter.com/bKJgDzAIF0
— Maartunn (@JA_Maartun) June 3, 2024
A Signal Of Bullish Trends
The movement of these long-dormant coins is more than a mere statistic; it reflects a broader sentiment among Bitcoin holders.
According to another CryptoQuant contributor, Onchained, during bullish market phases, it is common for long-term holders to offload parts of their holdings as prices rise. This pattern is currently evident as Bitcoin continues to test major resistance levels.
Moreover, Onchained further revealed that despite recent market fluctuations, the consistent increase in Bitcoin held in unspent transaction outputs (UTXOs) for over three years suggests a strong bullish sentiment persists among veteran investors.
The analyst further noted:
The 1-year+ and 2-year+ cohorts have ceased selling, transitioning from a distribution phase to a holding phase. This change indicates a renewed confidence in Bitcoin’s future price potential, as these cohorts choose to retain their holdings rather than liquidate them at current prices.
Adding to the complexity of Bitcoin’s market dynamics is the recent decline in miner reserves, hitting a 14-year low, reminiscent of the early days of Bitcoin when Satoshi Nakamoto was still active. This decrease in miner holdings could presage a tightening of Bitcoin supply, potentially accelerating a supply crunch.
Featured image created with DALL-E, Chart from TradingView
Dormant Bitcoin Address Awakens After a Decade, Moves $9.8 Million in BTC
May has emerged as a notable month for ‘sleeping bitcoin’ transactions, with a long-dormant address, inactive for ten years and six months, awakening on May 28 to move 145.89 BTC, valued at .8 million. Over 9 Million in Bitcoin From 2013 Moved in May After a much quieter April, May has witnessed numerous dormant bitcoin […]
Bitcoin News
Dormant Bitcoin Wallet Transfers 114 BTC Worth $7.6M After 11 Years
With bitcoin’s price up 6.8% from last week, a dormant bitcoin address from 2013 became active for the first time in over 11 years, transferring 114.42 bitcoins valued at .67 million. Sleeping Bitcoin Wallet Awakens After 11 Years, Moves 114 Bitcoins April and May have seen fewer awakenings of long-dormant bitcoin addresses, but some noteworthy […]
Bitcoin News
Mega Whale Moves 2,000 Dormant Bitcoins From 2010 in Third Series of Transfers This Month
On March 1, a well-known colossal whale holding bitcoins from 2010 activated 2,000 dormant bitcoins across 40 transactions in a single block. Just four days afterward, on March 5, this entity once more made waves by transferring 1,000 bitcoins originating from the same year. For the third instance in March, this entity has returned, reallocating […]
Bitcoin News
Bitcoin’s Dormant Giants: March Sees Unprecedented Movement of Vintage BTC
In recent times, bitcoin has consistently remained above the ,000 mark throughout the entire month of March. With its value soaring, many long-standing holders have started to transfer substantial quantities of dormant bitcoins from wallets that have not seen activity for years. March has emerged as a pivotal month for transactions involving these vintage bitcoins. […]
Bitcoin News
14-Year Old Dormant Bitcoin Wallet Wakes Up To Crash BTC Price
The Bitcoin foray past its previous all-time high into new territory was short-lived as the crypto dipped in the hours after. On-chain data has shown an interesting scenario that contributed to selling pressure leading to the crash. According to Spot On Chain, a dormant Bitcoin address holding .1 million worth of Bitcoin recently came to life after 14 years of inactivity to sell all of its large holdings.
Bitcoin Wallet Wakes Up To Crash BTC Price
Bitcoin recorded a new all-time high of ,200 during the week to surpass the previous record set in November 2021. This long-awaited Bitcoin milestone ignited a strong feeling of euphoria among crypto traders as it marked the first step to a six-digit Bitcoin price. However, this euphoria was short-lived as the new all-time high caused a wave of profit-taking among investors, which resulted in Bitcoin falling to ,200 in the hours that followed.
On-chain data from Spot On Chain indicates that this crash was further exacerbated by a long-dormant Bitcoin whale. The whale address, which had remained inactive since 2010, woke up after the new Bitcoin all-time high to sell all of its holdings.
According to Spot On Chain, the whale minted 1,000 BTC back in 2010 when the price was below .28. That would mean the Bitcoins were worth 0 at the time they were acquired. By the time they were sold on the crypto exchange Coinbase, the Bitcoins were worth ,116 per coin, suggesting that the whale might have profited over million.
A dormant whale woke up after 14 years to deposit all 1,000 $BTC (.1M) to #Coinbase at ,116 ~20 hours ago, allegedly contributing to the recent market crash!
The whale minted those $BTC in 2010 when the price was below .28, suggesting that the whale might just have taken… pic.twitter.com/VBj6VvzAuH
— Spot On Chain (@spotonchain) March 6, 2024
The Bitcoin blockchain is home to many active and dormant whale addresses. The reactivation of old, dormant wallets containing massive amounts of BTC like this one tends to attract the interest of investors about who owns them. The reactivation of dormant addresses is impossible to predict, and not all of them indicate profit-taking.
What’s Next For BTC?
Bitcoin’s pullback after setting a new all-time high was anticipated by some expert traders. The crypto has since regained its footing after the dip and is now trading at ,915.
Most of the recent spike can be attributed to massive accumulation from traders and institutional inflow into Spot Bitcoin ETFs. Despite outflows from Grayscale’s ETF, the total net flow into the ETFs was 2 million yesterday. The total net flow since January 11 has now crossed over .895 billion. At the same time, Bitcoin whale transactions worth at least 0,000 now stand at 7 billion in the past seven days.
16,000 Bitcoin Dormant Since 5+ Years Suddenly Moves, What’s Going On?
On-chain data shows 16,000 BTC, which have been dormant for 5-7 years, have finally shown some movement on the Bitcoin blockchain.
5-7 Years Old Bitcoin Age Band Has Made A Large Move
As pointed out by an analyst in a post on X, a large stack of dormant coins has moved across the network today. The relevant on-chain indicator here is the “Spent Output Age Bands” (SOAB), which keeps track of the movements of the various Age Bands on the blockchain.
“Age Bands” here refer to groups of coins divided based on their total holding time. For example, the 1-month to 3-month Age Band would include all coins that have been dormant (that is, staying inside the same address) since between one and three months ago.
If a large number of coins belonging to this holding time range would transfer on the blockchain, then the SOAB for this particular Age Band would register a spike. In the context of the current discussion, the 5-7 years Age Band is of interest.
The chart below shows the recent SOAB data for this Age Band specifically:
As displayed in the above graph, a large amount of coins aged between 5-7years old appear to have just been moved on the network as the corresponding Age Band has registered a spike.
This Age Band is a segment of the wider and “long-term holder” (LTH) group, which includes investors who have been holding onto their coins since at least 155 days ago.
Statistically, the longer a holder keeps their coins dormant, the less likely they become to sell at any point. As such, the LTHs are generally considered to be more resolute than the rest of the market (the “short-term holders“).
Since the 5-7 years Age Band would include coins that are old even in LTH terms, their owners would have to be diamond hands among diamond hands. Due to this reason, it can be something notable when such ancient entities finally decide to break their silence.
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During the latest SOAB spike, these investors have moved a massive stack of 16,000 BTC (around 7.8 million at the current exchange rate). Now, what implications this move may have on the market depends on what these investors intend to achieve with it.
A dive deeper into on-chain data suggests the move was an outflow from the cryptocurrency exchange Coinbase, as the chart below shows:
The fact that it is an outflow may be a positive sign for Bitcoin, as it means that selling may not have been the goal here. Rather, the move implies the whale entity behind it may be moving towards self-custody to HODL further, or a large buyer like an ETF is gobbling this BTC up.
BTC Price
Bitcoin had made a visit down to ,600 during the weekend, but the cryptocurrency already appears to have bounced back as its price is now floating around the ,400 level.