Bitcoin Whale Moves 1,000 BTC That Was Dormant for 10+ Years
A recent on-chain data analysis has revealed that a significant amount of Bitcoin, which had been dormant for over 10 years, has been transferred by a whale entity. This movement of coins that have remained untouched for such a long period of time is an interesting development in the crypto space.
The “Spent Output Age Bands” Indicator
An indicator called “Spent Output Age Bands” (SOAB) is used to measure the total amount of coins being moved across the Bitcoin blockchain based on their age. The age bands refer to groups of tokens categorized by the length of time they have remained dormant without being involved in transactions.
- The 1 day to 1 week age band includes coins with their last transaction occurring within that time frame.
- The SOAB tracks the movements of coins in each age band, measuring their activity on the network.
When a coin that has been dormant for a certain period of time finally moves on the network, it exits its current age band and its age resets to zero. Therefore, the SOAB looks at the age of the coin prior to its recent transaction.
The Significance of the 10+ Years Age Band
Of particular interest in this analysis is the 10+ years age band. Recent data shows a significant movement in this cohort, with a total transfer of 1,000 BTC (worth approximately $67 million) across the network.
Considering the large scale of this transaction, it is likely that a whale entity was responsible for it. The question arises as to why this whale suddenly decided to move these coins after such a long period of silence.
Lost Coins or Diamond Hands?
When coins reach such an old age, it is often due to them being lost rather than intentionally held (HODLed). It is possible that the keys to these coins were misplaced and the whale only recently regained access to them.
Alternatively, if the investor truly held onto these coins for over a decade, they would have demonstrated exceptional resilience in not selling during multiple bull runs and missed opportunities for significant profits.
Historical Movements of Old Coins
This recent movement of old coins is not entirely uncommon during bull markets. As Bitcoin gains public attention and users become motivated to search for lost wallets, selling of these coins can occur. However, historically, the market has absorbed such selling without significant impact.
BTC Price Update
As of now, Bitcoin is trading around $67,000, reflecting an 18% increase over the past week. The cryptocurrency market continues to show positive momentum.
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