A Bitcoin wallet that had been dormant for years has suddenly resurfaced, transferring 8,000 BTC worth approximately $535.64 million. The wallet, which dates back to mid-2018, moved the holdings to multiple addresses, including a Binance deposit, during a time when Bitcoin was experiencing a crash in value.
The dormant wallet made its first transaction in 5.5 years on June 11, catching the attention of analysts and investors. Dormant Bitcoin wallets, which show no activity for extended periods, can be seen as bearish indicators when they suddenly become active, suggesting that large holders are selling off their holdings. This particular movement occurred during a time when BTC was down nearly 5%, leading to significant liquidations in the crypto market.
CryptoQuant data indicates that the Bitcoin average dormancy was 9.3098 on June 10, a metric that measures the average number of days that moved coins have been inactive. An increase in dormancy can signal a potential price drop as long-term holders move or sell their coins. This trend is further evidenced by a previous incident in which a dormant Bitcoin wallet from 2013 was reactivated, coinciding with a subsequent price drop in BTC.
Despite the belief that large holders moving their holdings to exchanges can cause price fluctuations, some experts, like Javier Bastardo from Bitfinex, disagree. Bastardo argues that the recent movement of dormant Bitcoin wallets may not significantly impact the market. He emphasizes that there are many long-term investors who are committed to holding their BTC positions for years, suggesting that these movements may not be as alarming as they seem.
While the recent movement of the dormant Bitcoin wallet has caused speculation and concern among investors, Bitcoin continues to trade at $66,449, down almost 5% in the past 24 hours. It is essential for users to independently verify information and consult with professionals before making any decisions based on this content, as market trends and movements can be unpredictable. BeInCrypto remains committed to providing accurate and transparent reporting in accordance with Trust Project guidelines.
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