Bitcoin Addresses Awakening and the Odd Trend
A series of dormant Bitcoin addresses that have been inactive since 2019 are suddenly coming back to life, with massive transactions being observed on-chain. Crypto intelligence and analytics provider Arkham Intelligence has identified these revived addresses, revealing that a total of $2 billion worth of Bitcoin has been moved in this resurgence.
In five separate transactions, around 49,852 BTC has been transferred on-chain, all initiated at the same time. One address, labeled ‘old-btc-jan-2024 (31z8K)’, moved 9.952k BTC worth approximately $427.16 million. Another wallet with the tag ‘3BL5T’ moved a slightly higher amount of 10.486K BTC valued at $450.26 million.
The largest transaction involved 11.115K BTC from the ’33adD’ address, with a valuation of $478.15 million. Additionally, an address tagged “3KNWi” transferred 9.445K BTC valued at $405.56 million, while the smallest transaction came from the address labeled “3Fs3V,” moving 8.859K BTC worth $281.1 million.
$2 BILLION of dormant Bitcoin moved just before US market open today, across several linked addresses.
The BTC had moved once in 2019, and before that had been dormant since 2013. pic.twitter.com/xD4frjzQuP
— Arkham (@ArkhamIntel) January 16, 2024
Although wallets becoming active again is not uncommon, the timing and historical trend of these particular addresses add an intriguing twist to the transactions. Two of the five transactions were transferred to a wallet labeled “bc1q9,” while the remaining three were moved to different wallets with an “old” designation. Arkham Intelligence has noted that these wallets consistently become locked and active simultaneously. The Bitcoins involved in this movement were consolidated from 49 different wallets into five addresses.
Right Time for the Move?
The revival of these Bitcoin addresses coincides with the approval of spot Bitcoin Exchange Traded Fund (ETF) products by the United States Securities and Exchange Commission (SEC). This significant movement of funds on the Bitcoin network also follows Grayscale Investments’ transfer of 9,000 Bitcoin. It indicates that market whales are strategically repositioning themselves to potentially capitalize on current BTC market trends.
Despite these movements, Bitcoin’s price is not being negatively impacted. In fact, the coin is currently up 1.32% to $43,365.01. It is gradually recovering from Week-to-Date (WTD) losses that have reached 5.76%.
Hot Take: Dormant Bitcoin Addresses Spring Back to Life with Massive Transactions
Around $2 billion worth of dormant Bitcoin has suddenly been activated, with large transactions being observed on-chain. This resurgence comes at an interesting time in the cryptocurrency industry, following the SEC’s approval of spot Bitcoin ETFs and Grayscale Investments’ significant Bitcoin transfer. Market whales appear to be strategically repositioning themselves, potentially taking advantage of current BTC market trends. However, these movements have not had a negative impact on Bitcoin’s price, as the coin is currently showing a 1.32% increase. This trend highlights the resilience and ongoing interest in Bitcoin despite periods of dormancy.
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