A bitcoin address that had been inactive for more than 8 years mobilized 2,207 BTC on the afternoon of Wednesday, November 10. The movement would have caused a 6% drop in the price of the cryptocurrency, which had market a new all-time high hours earlier.
The BTCs were in the original address since October 8, 2013 , date from which the entry movements or departure, until this Wednesday. At that time, the balance in bitcoins was equivalent to $ 294,287. The value at the time of writing this report exceeds USD 143 million.
The whale transferred all the assets to two segwit addresses, the first received 300 BTC and the second 1,907 BTC. Once the news spread, the funds moved to other directions.
The awakening of this old direction seems to have generated concern among investors, as the price of bitcoin fell close to USD 4,000. During the session on Wednesday, bitcoin had experienced a new bullish rally that led it to set a mark at $ 69,044, according to Coingecko figures. It seems that the market interpreted the move as a sign that the whale would be selling the BTC.
Does former holder take profit or just change purse?
It is impossible to know for sure if the former holder made this transaction to sell your BTC and take a juicy profit, or you just decided to switch wallets. However, there are some theories that circulate in the media and social networks.
The transaction data on the bitcoin blockchain indicates that the funds were not transferred to known exchange addresses . However, an OTC (over the counter) market transaction, also known as OTC, is not ruled out.
Another analysis focuses on the fact that the funds were in a legacy address, one of the oldest formats of bitcoin addresses. It is possible that the holder decided to migrate to the segwit format, which is more modern, offers greater security and cheaper transfers.
Bitcoin blockchain analyst David Puell, posted a thread of tweets where he noted that the movement of currencies in the range of 7 to 10 years old “is a predictor of the highs.” In addition, he refers that these types of movements are not so rare, since they have been taking place since 2017, from a long-term perspective.
On the other hand, in Puell’s opinion, a really important profit-taking would take place from 3,000 BTC. Also, it seems likely that, as the Mt. Gox funds are released, we could see similar movement more often.