Inactive Bitcoin addresses are reactivating despite a downturn in the cryptocurrency market during a historically positive month for the leading digital asset.
After lying dormant for 12 years, a Bitcoin (BTC) address recently moved 119 tokens, currently valued at $6.9 million, according to Whale Alert. Data from mempool.space shows the last transaction from this inactive address was back in February 2012 when its holdings were worth approximately $600, transferring 2.98 BTC valued then at $15.
The recent activity involved two transactions: the first moved 76 BTC and the second 43 BTC. Large holders in the crypto space, known as whales, are closely monitored as their actions can influence market sentiment. Despite the anonymity of this whale, the sudden reactivation of this address raises questions about their motivations. Both transactions were consolidated into a new single wallet, indicating a move to centralize holdings.
This year has seen multiple instances of dormant Bitcoin addresses becoming active. On May 6, for example, a whale transferred $43 million in cryptocurrency from an inactive address for the first time in a decade. Another notable transaction occurred two months later when a whale moved 1,000 BTC valued at approximately $60 million.
In addition to awakened addresses, another whale is currently liquidating significant holdings despite market losses. LookOnChain reported that within five hours, this whale deposited 3,500 BTC worth $206 million onto Binance. Such movements typically precede sales on exchanges, contributing to recent market volatility. According to data providers, this particular whale has been selling its Bitcoin holdings at a loss of $20 million over several weeks.
Meanwhile, Bitcoin has experienced a decline of over 5%, dropping below $57,500 for the first time since April, according to CoinGecko. This downturn coincides with a shift in market sentiment as indicated by the crypto “fear & greed” index, which has moved from greed to fear in recent days.
For more insights into Bitcoin’s current market dynamics:
– Peter Schiff discusses Bitcoin’s price nearing ‘critical support’: is his analysis correct?