Bitcoin Whale Moves Dormant Coins on the Network
On-chain data reveals that a Bitcoin whale has recently transferred approximately 16,003 BTC on the network after remaining inactive for more than five years. The transaction has caught the attention of the CryptoQuant community manager, Maartunn, who highlighted this event on social media.
Understanding Spent Output Age Bands (SOAB)
The “Spent Output Age Bands” (SOAB) is an indicator that tracks the total amount of Bitcoin being transferred on the network based on the age of the coins. The age bands are divided into different groups depending on how long the coins have been dormant. For instance, the 1-day to 1-week age band includes tokens that have remained inactive for at least a day but no longer than a week.
In this particular case, the focus is on the 5-year to 7-year age band. The SOAB data chart displays the transfer activity for this specific cohort.
Large Scale Transfer of Dormant Bitcoin
A significant amount of Bitcoin from the 5-year to 7-year age band, totaling 16,003 BTC, has been moved on the network. At current exchange rates, this stack is valued at approximately $1.08 billion.
Given the magnitude of this transfer, it is likely that a whale entity is involved. The reasons behind their decision to break their silence and initiate this transaction are not clear-cut and may be multifaceted.
Maartunn conducted further investigation into the transfer and discovered that its profit-to-loss ratio was 15, which is quite substantial. While there have been similar transfers with comparable profit ratios in recent times, this particular transaction stands out due to its scale.
According to analysis, the transaction is linked to a move by Coinbase. The netflow data for Bitcoin on the exchange indicates the direction of this transfer.
CryptoQuant’s netflow metric suggests that the transaction was an outflow, as its value turned negative. However, Maartunn is hesitant to conclude whether it is a genuine outflow or simply an internal flow related to ETFs. Further investigation is needed to determine the true nature of the transfer.
If it turns out to be an outflow, this could be seen as a bullish signal for Bitcoin. It suggests that a large entity may be engaging in significant buying activity and subsequently taking the coins into possible self-custody.
Bitcoin Price Movement
Bitcoin has experienced notable price fluctuations over the past week and is currently trading around $67,000.
Hot Take: Whale Moves Dormant BTC Worth $1.08 Billion
A Bitcoin whale has recently made a significant move on the network by transferring around 16,003 BTC that had remained dormant for over five years. This event has drawn attention within the crypto community and raises questions about the motives behind such a substantial transaction.
The Spent Output Age Bands (SOAB) indicator provides insights into the age groups of coins being transferred on the network, with particular focus on the 5-year to 7-year age band in this case. The transfer of this large stack of Bitcoin highlights the involvement of a whale entity.
An analysis of the transaction reveals a profit-to-loss ratio of 15, indicating substantial gains. While similar transfers have occurred in the past, the scale of this particular movement distinguishes it from others.
The transaction appears to be linked to Coinbase, as indicated by the netflow data for Bitcoin on the exchange. However, further investigation is required to determine whether it is an outflow or an internal flow related to ETFs.
If it is indeed an outflow, this could signal bullish sentiment for Bitcoin, suggesting that a large entity is engaging in significant buying activity and potentially securing the coins in self-custody.
Meanwhile, Bitcoin’s price has experienced notable fluctuations in recent days, with its current value hovering around $67,000.
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