A $115 million Bitcoin whale wakes up from a 10-year slumber – what happens next?
Bitcoin is still driving the price back up, seeking to get back to the $70,000 price level. The cryptocurrency is currently trading above $69,000, up 1.6% over the past 24 hours. This price volatility occurs during the increase in the increase in the holdings of some whales and some short-term holders.
The blockchain analytics platform discloses instances of whale activity on social media. An interesting transaction came from the whale wallet, which recently woke up after 10 years of hibernation, transferring 246 BTC worth $16.73 million.
The Bitcoin blockchain is home to a large number of early investors who own a large number of bitcoins that have been dormant for years. In fact, the reboots of dormant Bitcoin addresses have been sporadic over the past six months, especially when the price of Bitcoin has soared to new all-time highs, most of which have caused a buzz and a rise in interest among Bitcoin investors.
Allegedly, a new Bitcoin whale address has been added to the roster of wallets that have come back from the dead. The whale address "1CLxmH", which held 1,701 BTC (worth $115 million at the time of writing) during a 10-year hibernation, recently woke up and transferred $16.73 million worth of 246 BTC to another wallet. Interestingly, on-chain data shows that whale addresses received 4,272 BTC throughout 2013 at an average price of $29.39.
The reactivation of old dormant wallets is usually driven by whales looking to sell all or part of their assets. Large-scale sell-offs like this often cause prices to plummet and increase selling pressure on short-term investors. However, the motivation for dormant address reactivation is unpredictable, and not all addresses indicate profit-taking.
In this case, the transaction data shows that the assets are transferred to two new private wallets. 50 BTC was transferred to the address "1PRREb", while 195 BTC was transferred to the address "bc1qga". As of this writing, the address "1CLxmH" still holds 1,455 BTC, worth $100.89 million.
In the spirit of whale accumulation, a new purchase from another whale address is outlined. The address has bought a total of 1,308 BTC worth $89.75 million at an average price of $68,617 since March 6, and another 1,137.35 BTC worth $7.85 million from the exchange less than 12 hours ago. Bitcoin is trading at $69,348, and the wallet currently holds $90.7 million worth of cryptocurrency.
Blockchain analytics platforms have noticed this accumulation pattern of whales, showing that wallets holding between 100 and 100,000 BTC have bought $21.6 billion worth of crypto in the last three months.
(Source: Scott Matherson)
