Dormant Bitcoin Whales Resurface and Transfer 6,500 BTC
Recently, three dormant Bitcoin addresses that had been inactive for over six years suddenly became active and transferred a total of 6,500 BTC. This movement of funds by long-term HODLers could have an impact on the current bull run of Bitcoin.
The Significance of Dormant Bitcoin Whale Transfers
In 2021, the movement of dormant Bitcoin addresses has attracted attention within the crypto community. In October, there was a surge in whale movement and acquisitions as Bitcoin experienced a significant price increase.
Now, on-chain data reveals that three dormant Bitcoin addresses from 2017 have moved for the first time in six years. These addresses transferred a combined total of 6,500 BTC, which is valued at approximately $230 million.
Analysis of the Dormant Addresses
A closer look at these addresses shows that they received their assets on November 5, 2017, and remained inactive until now. At the time of the initial transaction, Bitcoin was trading at around $7,400. Currently, one BTC is worth $35,230.
Possible Selling Pressure
The timing and nature of these BTC transfers suggest that they may be controlled by a single entity. This uncertainty can impact buyer confidence as it indicates a potential price drop and profit-taking strategy by the whale. However, it could also signal anticipation of further growth and repositioning for the next rally.
On-chain data suggests that the BTC is still held in private addresses, indicating self-custody by the whale. The recent increase in whale transfers to exchanges poses a risk to Bitcoin’s ongoing bull market and price gains. Nevertheless, there have also been notable whale purchases during this period, indicating a mix of buying and selling activity from both bulls and bears.
Hot Take: Bitcoin Bulls Eye Continued Gains
Despite the potential impact of whale transfers, Bitcoin bulls are optimistic about the continuation of October’s gains in November. On-chain signals currently point to greed on the Bitcoin Fear & Greed Index. If Bitcoin breaks above the $35,000 mark, it could potentially reach the order block at $45,000 in 2022.
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