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Popular on-chain data agency Glassnode has published a thread, informing the community about old wallets starting to spend the Bitcoins they hold. The aggregate volume of BTC spending has surpassed the $4 billion level, which is the highest mark since February of this year.
Old wallets move billions of USD in Bitcoin
In particular, the thread states, the 3-5-year cohort of wallets is making its second-biggest outflow after March last year, when they spent roughly $6 billion worth of Bitcoin. So far, they have spent roughly $2.16 billion.
As for the 2-3-year cohort, their spending has so far reached $1.41 billion in Bitcoin. Wallets holding for 1-2 years have by now spent $450 million worth of BTC. Overall, the tweet says, for the 1-5-year cohort, this is the fifth largest spending spike in this Bitcoin cycle, and it has mostly been driven by older Bitcoin wallets.
Bitcoin cannot reach $10 million for now, Samson Mow says
Prominent Bitcoin supporter and JAN3 CEO Samson Mow tweeted this week that the only thing preventing BTC from trading at $10 million per coin is the fact that people do not understand BTC and how it can transform the global financial system.
Still, he believes that Bitcoin will inevitably reach $1 million soon. He believed that two key catalysts for that last year were the launch of spot Bitcoin ETFs and the fourth Bitcoin halving, which took place on April 20. The former would create a demand shock, and the latter — a supply one. Once those two Bitcoin shocks clash, BTC would print an Omega candle, leading Bitcoin to $1 million. But this has not happened yet.
Instead, the key driver for the Bitcoin price surge last year was the election of Donald Trump as a pro-crypto president. After taking office, he signed an executive order to create a Strategic Bitcoin Reserve and a Crypto Stockpile. Besides, he appointed a crypto-friendly head of the SEC, and the regulator began dropping its lawsuits against crypto companies.
This year, on Jan. 20, Bitcoin reached an all-time high above $109,000. On May 23, Bitcoin soared above $111,000, marking a new historic price peak. The surge was driven by the U.S. and China agreeing on another 30-day pause in immense trade tariffs implemented against each other.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team