Key Takeaways
- As per reports, the crypto wallet identified deposited a substantial 1,000 BTC, valued at more than $61 million, to Coinbase Pro
- Earlier this week, a Bitcoin wallet that had been dormant for 14 years transferred 50 BTC, worth over $3 million, to Binance.
On Friday, Bitcoin wallet that had been inactive for six years suddenly came to life, transferring a significant amount of Bitcoin to Coinbase Pro. The wallet, identified as 12EMDoUhaNCuWZeeT6ey61AkjKyzmjV2m3, moved 1,000 BTC, worth over $61 million. This activity coincides with Bitcoin’s struggle to maintain its price above $62,000.
Lookonchain and Arkham Intelligence tracked the transaction and noted that the coins were originally acquired six years ago for just $6.68 million. In the crypto world, wallets holding 1,000 BTC or more are referred to as “whales,” making this wallet a major player.
This event isn’t an isolated incident. Earlier this week, a Bitcoin wallet that had been dormant for 14 years transferred 50 BTC, worth over $3 million, to Binance. These activities are happening amid a bearish market trend, where whales, are either capitalizing on lower prices to buy or staying cautious.
This quarter has seen a noticeable increase in dormant Bitcoin wallets becoming active and moving coins to exchanges. For example, on Thursday, a wallet linked to a Bitcoin miner woke up after 14 years and sent 50 BTC to Binance. Analysts believe these dormant holders might be looking to cash out while prices are high or engaging in speculative trading.
The selling by long-term holders, combined with faster liquidations by miners and the German government’s divestment of coin holdings, has led to a nearly 9% drop in Bitcoin prices this month. This recent activity is part of a larger trend of dormant Bitcoin addresses becoming active.
On May 12, two connected Bitcoin wallets transferred a combined 1,000 BTC, worth $61 million at the time. Additionally, a week prior, a Satoshi Nakamoto-era Bitcoin wallet transferred 687 BTC, worth nearly $44 million, to two separate addresses.
Despite a plethora of Bitcoin wallets becoming active these days, there still exists several inactive Bitcoin addresses. According to an April 24 report by Chainalysis and Fortune, nearly 1.8 million Bitcoin addresses have been dormant for over a decade. These dormant wallets, excluding Nakamoto’s, hold approximately $121 billion worth of Bitcoin at current prices. However, it’s uncertain how much of this Bitcoin can be retrieved, as many wallet owners have lost or forgotten their seed phrases.
Whale Alert recently reported that whales have transferred 1,200 BTC, worth over $73 million, to Binance and another whale dumped 1,710 BTC, worth $104 million, to Kraken. When large dormant addresses become active and send BTC to exchange deposit addresses, it often signals potential selling. On-chain analyst Lookonchain noted that smart whales are moving BTC to exchanges in anticipation of a price drop to $57,000.
