Bitcoin Whale Reactivates After a Decade of Dormancy

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A Bitcoin whale that has been out of play for over ten years has returned to action, moving the available balance to a new unidentified wallet. The reactivation has sparked discussions across the crypto market especially since it happens amid a significant price drop.

Over the past few months, we have seen several Bitcoin early investor addresses spring back up after laying idle for years. While the reason behind the timing is unknown, investors are worried about a potential impact on the already sliding price of the coin, wondering if it will catalyze more dip. Let us look at it in detail.

Bitcoin Dormant Address Resurges

Whale Alert, a prominent crypto large transaction tracker, reported earlier that the address, which contains a total of 43 BTC, has been dormant for exactly 10.4 years (10 years and 4 months). This means that the last time the wallet recorded any transaction was about five years after the launch of Bitcoin. At the time, the price per BTC was about $318, meaning that the total value of the holding was $13,674.

However, fast-forward ten years later, the value of the flagship token has surged exponentially, even reaching an all-time high of $73,000 in March. Even though the price has dropped to $58k at the time of writing, the total value (now $2.5 million) still represents a significant difference from what it was in 2014. Following the activation, the whale initiated about 29 different transactions, sending the entire 43 BTC to a new address identified as ‘bc1q…09xxj,’ paying a total transaction fee of $21.49.

In May, a similar pattern was observed when two whales identified as “16vRqA” and “1DUJuH” were reactivated after more than a decade of dormancy. Interestingly, both addresses contained the same amount of Bitcoin, 500 BTC, and went idle within a day interval of each other. In June, another wallet address which has been dormant for 5.6 years resurfaced, moving a staggering 8,000 BTC to the Binance exchange. The generic reactivation of these wallets and the possibility of dumping the balance coin into the open market has raised major concerns.

Bitcoin (BTC) Price Movement

Meanwhile, the price of Bitcoin has witnessed a notable decline in the last 24 hours. According to data from CoinMarketCap, BTC now trades at $58,489, representing a 3.91% decline. This major drop has also impacted the sentiment of investors in the market. As measured by the crypto fear and greed index, the emotions of investors now rest on “44,” signifying fear and lack of confidence in digital assets.

While the price of BTC is taking a hit, the trading volume over the last day has surged by 55.13% to $34.9 billion with a live market cap of $1.15 trillion. In the last 24 hours, BTC has traded in the range of $58,128. and $60,928, marking a 20.5% decrease from its all-time high of $73,737 reached in March 2024.

Also, Coinglass data reveals that the crypto market has seen heavy liquidation over the last day. With more than 56.670 traders liquidated, the total liquidation now rises to $162.22 million with OKX having the largest single liquidation of $4 million.

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