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In a remarkable turn of events, a dormant Bitcoin whale has reemerged after 9.3 years to transfer 2,071.5 BTC, valued at around $60.7 million, to an address starting with "bc1q." This whale initially received 6,071.5 BTC on Dec. 19, 2013, when the price of Bitcoin was a mere $663.
The timing of this large transfer is particularly noteworthy, as it coincides with a massive market correction and Bitcoin's price dropping below the $30,000 threshold. Additionally, Bitcoin has slipped below the 21-day moving average, which typically serves as a short-term support level for the cryptocurrency. This development suggests that the ongoing correction may persist for longer than initially anticipated.
A whale with 6,071.5 $BTC($178M) that has been dormant for 9.3 years transferred 2,071.5 $BTC($60.7M) out today.
— Lookonchain (@lookonchain) April 20, 2023
And the 2,071.5 $BTC was finally transferred to the address starting with "bc1q".
The whale received 6,071.5 $BTC on Dec 19, 2013, when the price was $663. pic.twitter.com/CBpoIy2mEk
The whale's awakening and subsequent transfer raise concerns. The transfer of such a large sum after nearly a decade of dormancy could potentially impact market dynamics and contribute to increased volatility.
However, it is essential to consider the broader context of the cryptocurrency market when assessing the potential ramifications of this event. While the whale's transfer is undoubtedly significant, the market has been actively capitalizing on the volatility and growth of liquidity fueled by the far larger Ethereum unlock. As such, it is unlikely that this single event will be the sole driver of any drastic shifts in the market.
Nonetheless, the reawakening of this ancient whale serves as a reminder of the potential for sudden changes on the market as old wallets control large sums of assets like Bitcoin or even Ethereum and can always produce pressure on the price that liquidity providers will not be ready to cover — especially if investors decide to drop their holdings directly on the market.
Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
Alex Dovbnya
Vladislav Sopov
Dan Burgin