Long-dormant Bitcoin wallet awakens, moves $60M

On Sunday, a Bitcoin wallet that had been inactive for nearly 12 years suddenly sprang to life, transferring 1,000 BTC (worth over $60 million) to a new address. This movement — detected by blockchain monitoring service Whale Alert — marks a significant event in the cryptocurrency world.

A dormant address containing 1,000 #BTC (59,989,823 USD) has just been activated after 11.8 years (worth 11,908 USD in 2012)!https://t.co/JOJTymSWal

— Whale Alert (@whale_alert) July 14, 2024

The wallet’s history is remarkable. It received the 1,000 BTC about 11 years and 9 months ago, when it was worth only $12,100. Since then, the value has increased by approximately 500,000%.

Interestingly, while the transaction was executed on Sunday, it was initially broadcast on January 19, 2024. This delay between broadcast and execution resulted in a substantial value increase, from $41.6 million to nearly $60 million, due to Bitcoin’s price appreciation.

The identity of the wallet owner and the reason for the transfer remain unknown. This event is part of a recent trend of dormant wallets becoming active.

Not an isolated case

Ten days prior, another 12-year-dormant wallet moved about $7 million. On May 12, a decade-old wallet transferred 1,000 BTC (over $60 million) in two transactions, and a week before that, 687.33 BTC (over $44 million) from another decade-old wallet was moved.

In March, the fifth-richest Bitcoin address, dormant since 2019, transferred $6 billion. During the same month, $140 million in Bitcoin mined in 2010 was consolidated into a single wallet. Earlier, in January, following the approval of spot Bitcoin ETFs in the U.S., nearly 50,000 dormant Bitcoin became active.

These dormant wallet transactions are of great interest to market observers for several reasons. Firstly, they provide insight into the behavior of long-term holders, often referred to as “Bitcoin whales.”

When these large holders move their assets after extended periods of inactivity, it can signal changing market sentiment or upcoming price movements. Their actions may influence other investors and potentially impact the overall market dynamics.

Furthermore, these transactions offer a unique glimpse into Bitcoin’s history and adoption. Many of these dormant wallets date back to the early days of cryptocurrency, when Bitcoin was far less valuable and less widely known.

The fact that these early adopters are now moving their funds could indicate a shift in their investment strategy or a response to current market conditions. Additionally, such movements can affect the circulating supply of Bitcoin, as coins that were effectively “lost” or out of circulation suddenly become active again.

This reintroduction of long-dormant Bitcoin into the market can have implications for liquidity and price stability, making these transactions a crucial factor for analysts to consider when assessing the broader cryptocurrency ecosystem.

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