A Bitcoin wallet that has been dormant for years has resurfaced for the first time in almost six years, moving 8,000 BTC, worth about $535.64 million.
Created in mid-2018, the wallet transferred its holdings to several addresses, including Binance deposits, when BTC plummeted.
Dormant Bitcoin Wallets Moved $535 Million in 2018
In the early morning US time on June 11, a dormant wallet moved its first transaction after 5.5 years of inactivity. According to Akram data, the wallet address transferred 8,000 BTC from Coinbase cold storage. The value of the assets moved was $535.64 million at press time.
A dormant Bitcoin wallet is an address that has been inactive for long periods of time, which can cause chaos if suddenly activated, especially with large transfers. Analysts often view these moves as bearish indicators, suggesting that large holders or whales are cashing out their holdings.
What's even more interesting is that dormant wallets became active while the BTC price fell by 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 number of days Bitcoin was dormant on June 10 was 9.3098 days. This indicator represents the average number of days for a coin to expire for a moved coin, and increases as long-term holders move or sell their coins, which can signal a potential price decline.
On May 21, a Bitcoin wallet that had been dormant since 2013 was reactivated, transferring $7.6 million in BTC after being inactive for nearly 11 years. As you can see in the chart, this transaction coincided with the price of Bitcoin falling from $70,000 to $67,000. It is clear that when large holders move their holdings to an exchange, it causes price fluctuations, which usually work in favor of the bears.
Read more: Bitcoin (BTC) Price Prediction 2024/2025/2030
However, some experts, including Javier Bastardo, Bitcoin Ambassador at Bitfinex, challenge this assumption. He said the recent activity of dormant Bitcoin whales would not have a significant impact on the market.
“I don’t think this is a significant move that will have any impact or influence the price of Bitcoin. However, it is important to understand that there are a significant number of long-term investors who are prepared to hold Bitcoin positions for years,” Bastardo told BeInCrypto.
As of this writing, Bitcoin is trading at $66,449, down nearly 5% in the last 24 hours.
Trusted
The information contained on the BeInCrypto website is published in good faith and for informational purposes only. Users are solely responsible for any consequences arising from their use of information on the website.
In addition, some content is an AI-translated version of the English version of BeInCrypto articles.
