- Inactive address containing 2,100 BTC has been reactivated according to a tweet from PeckShield.
- Such movement is likely to trigger the market and cause movement as investors and analysts try to figure out where the market is headed.
- It is a wait-and-see on how the market will react to this news and subsequent ones that may follow this trend.
PeckShield, a blockchain security firm, announced in a tweet that an inactive address containing roughly 2,100 BTC, or around $56.3 million at today’s prices, has been reactivated. A sudden movement of whales with substantial holdings of cryptocurrency often have the power to sway token prices by influencing market sentiments
According to Peck Shield, “A dormant address 13RLtG…PXs which received 2,100 Bitcoins which was worth $11.8M at the time, on October 19th, 2017, moved its Bitcoins now worth a staggering $56.3m to a new address 1LGnp5…GgM.”
The owner of the address must be smiling all the way to the bank as the investment has grown by approximately 480% within a period of 5 years, signifying a hefty return on investment. The owner could be preparing to sell or diversify the portfolio. It could also be that the owner is privy to information that is not yet public and is prepared for a first-mover advantage.
Bitcoin is currently trading at $26,867, which is a minor fluctuation from June considering it has gained 4.2% over the past week. Long-term holders control up to 70% of the total Bitcoin supply which is about 14,787,265 BTC. 69.2% are in profitable positions and have been held for more than 155 days according to data from Glassnode
Increased Whale Activities
This report by Peck Shield, is similar to one reported by Whale Alert last month where they posted that a Satoshi-era Bitcoin address was reactivated after nearly 13 years
a dormant address containing 1,005 Bitcoins, which translated to $29,750, 772 at the time had been activated after 12 years and 8 months.
— Whale Alert (@whale_alert) August 14, 2023
The whale first received 1,000 Bitcoins in November 2010 when Bitcoin was $0.225. The address received a further 5 BTC in April 2011 when Bitcoin was trading at $1.31.
Whale Alert prides itself as the most advanced blockchain tracker and analytics system reporting large and interesting transactions as they happen.
Awakening such Bitcoin holdings which has substantial amount often triggers speculation as analysts and investors try to understand the motive behind such an abrupt move. Some experts believe the address belongs to an early Bitcoin miner who began mining in early 2010.
Some Blockchain analyst normally links such a big movement to Bitcoin’s secretive creator, Satoshi Nakamoto. It is believed Natoshi mined one million bitcoins in 2009
Additional movements involving dormant wallets was reported by Blocknews. In May a wallet which had not been active since 2012, transferred over 400 BTC valued at over $11 million. A different wallet which had been inactive for over ten years suddenly moved 279 BTC.
Investments in Bitcoin
Bitcoin pushed past the $30,000 barrier in June, traditional financial institutions have shown keen interest in the sector. 2 months ago US Securities and Exchange Commission (SEC) added several prominent names including BlackRock and Fidelity to the Federal Register as applicants for Bitcoin ETF (exchange-traded fund)
The first Bitcoin futures ETF was approved in October 2021, this contributed to a surge in Bitcoin’s price to an all-time high of $69,000 in November 2021.
It is a wait and see on how the market will react to this news and subsequent ones which may follow this trend
