3 - 5 minute read
Bitcoin investors were recently stunned by the news that a long-dormant Bitcoin (BTC) whale has come back to life after lying low for over nine years. According to on-chain data from LookonChain, the whale transferred 2,071.5 BTC, worth approximately $60.7 million at the time of the transfer. LookonChain reveals that the address which had previously transacted in December 2013 has suddenly become active. Starting the day at $28,894, the BTC has recorded a 4,258% profit.
The whale, which held a total of 6,071.48 BTC since December 19, 2013, received the coins when the price was just $663. The address has been dormant for approximately nine years, and only trace amounts of Bitcoin, typically BTC worth cents, were sent to the address during this time. Researchers suggest that this is an indication of dusting attacks that could have occurred, typically for various reasons including academic research, spying, or criminal intentions.
Notably, a long-dormant wallet that suddenly shows activity typically attracts attention due to the possibility of it being linked to the pseudonymous creator of Bitcoin, Satoshi Nakamoto. The pseudonymous Bitcoin creator’s last online activity was in December 2010 on the Bitcoin Talk online forum. Researchers like Sergio Lerner estimate that Satoshi owns hundreds of thousands of Bitcoin, with some suggesting it could be in excess of one million BTC.
The sudden activity from a long-dormant wallet is a significant development that has implications for traders in the cryptocurrency market. Addressing this news, Alex Kuptsikevich, FxPro senior financial analyst, opined while speaking to CoinDesk that “If these assets will be transferred to exchanges and sold, we may witness extraordinary levels of volatility.”
Analysts predict that the market may react in two ways. The first possibility is that the coins could be transferred to exchanges and subsequently sold, which would cause a sharp decline in the market price. The second scenario is that the coins could be re-invested in the market, causing a significant spike in the price of Bitcoin.
A sudden influx of BTC to the exchanges could either lead to an amassment of buyers or a dumping of coins, causing a sudden surge in price fluctuation. That said, investors should watch out for any future actions taken by this particular whale, as they could have a significant impact on future market trends.
The Bottom Line
The sudden activity of a long-dormant BTC address has led to speculation about the possibilities of renewed investment or sales of the coins. While there is no clear indication of the intentions of this particular whale, traders should keep their eyes open for any future developments. For now, investors should be wary of possible price fluctuations and volatility that could arise from renewed market activity from this long-dormant wallet.