As analysts keep their bullish eye on bitcoin’s trajectory, two long-dormant wallets have sprung back to life, catching the attention of the digital asset community.
With a combined holding of 1,000 bitcoin, valued at a staggering $62 million as per the current market rate, these wallets have reawakened after lying dormant for a decade.
Notably, before the latest transfers, both wallets were the 4,353rd largest Bitcoin whales, as assessed by BitInfoCharts.
The first wallet, with the address “16vRqAJ1wfuFBkVMabKnZHLkeN3uwqjzEa,” made its move at block 843,131 on May 12, 7:10 pm UTC, transferring out its entire 500 bitcoin stash.
Shortly after, the second wallet, under the address “1DUJuHGVT4sa1VMGjfF9YdFnFAEw6NgfC5,” followed suit two blocks later, also moving 500 bitcoin.
These wallets originally received their bitcoin on September 12 and 13, 2013, when the price of bitcoin was a mere $124. Fast forward to today, the value of these coins has multiplied by a staggering 456 times, reaching a combined worth of $62 million.
After the transfers, one of the wallets quickly dispersed its 500 bitcoin to various other wallets, while the other remains with its 500 bitcoin intact. The timing and nature of these transactions have led experts to speculate that the wallets might have been owned by the same entity.
This sudden movement, coupled with the historical significance of the wallets, has garnered attention within the Bitcoin space.
Why are Dormant Wallets Awakening?
Interestingly, this event follows closely after another instance where a Bitcoin wallet from the era of Satoshi Nakamoto, the pseudonymous creator of Bitcoin, transferred a substantial amount. Last week, this wallet moved 687 bitcoin, valued at $43.9 million, to two separate addresses.
Despite such occurrences, there remain around 1.8 million dormant Bitcoin addresses, according to analysis by Chainalysis and Fortune. These dormant wallets, excluding Nakamoto’s, hold an estimated $121 billion worth of bitcoin, representing 8.5% of the total bitcoin supply.
The recent awakening of dormant whales coincides with the halving event, suggesting strategic moves within the market. However, the specific reasons behind the awakening of dormant wallets remain uncertain.
While some speculate that it could signal a desire to sell bitcoin at opportune moments, others suggest more cautious motives, such as transferring funds to more secure wallets or services.
As these dormant wallets re-emerge, the dynamics of the Bitcoin market are set to undergo significant shifts.
Bitcoin’s current price is hovering between $61,000 and $63,000, reflecting a remarkable 134% increase over the past year, with a slight uptick from $60,000 just yesterday. This surge in value amid recent market volatility underscores Bitcoin’s resilience and enduring appeal as both a store of value and an investment asset.
Investors and analysts are closely monitoring whales’ movements, anticipating how they will shape the future trajectory of Bitcoin and the broader digital asset landscape.
