Massive Movement of Bitcoin Aged 5 to 7 Years
New data from the Bitcoin blockchain reveals that a significant amount of dormant Bitcoin that has been untouched for between 5 and 7 years has recently been moved. This movement was detected by an analyst at CryptoQuant, who observed a spike in the “Spent Output Age Bands” (SOAB) indicator, which tracks the transfer of Bitcoin based on how long it has been dormant.
Understanding Age Bands
The age bands categorize Bitcoin based on the length of time it has remained inactive. For example, coins that haven’t moved in 6 to 12 months fall into the 6-month to 12-month age band. When there is a spike in the SOAB for a particular age band, it indicates that addresses within that group have decided to move their coins.
Potential Reasons for Movement
The intention behind these movements is often unclear, but the length of dormancy can provide some insights. Younger age bands frequently experience spikes in activity due to short-term traders. However, when older entities start moving their coins, it can be an indication that they are preparing to sell.
The 5-Year to 7-Year Age Band
One particularly interesting age band is the 5-year to 7-year category. Recent data shows a spike in the SOAB for this group, suggesting that dormant coins from this period have just been moved. These coins are among the oldest in circulation, and there is a possibility that some may have been lost rather than intentionally held onto.
The Implications
The latest spike involved a total of 49,866 BTC, valued at over $2.1 billion at current exchange rates. According to CryptoQuant, the average buying price for coins in the 5-7 year age range would be $6,672, indicating a potential profit of approximately 640%. It remains to be seen whether the holder will sell these coins, as they have not been sent to exchanges at this time.
BTC Price
As of now, Bitcoin is trading around $42,700, representing a 5% decline over the past week.
Hot Take: Dormant Bitcoin Movement Raises Questions
The recent movement of dormant Bitcoin aged between 5 and 7 years has caught the attention of analysts. This significant spike in activity suggests that long-dormant entities may be preparing to sell their holdings. With a potential profit of over 600%, it’s no wonder these holders are considering realizing their gains. However, it remains uncertain whether these coins will be sold on exchanges or if the whale behind this movement has other plans in mind. The crypto community will be watching closely to see how this situation unfolds and its impact on the market.
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