After the news of Bitcoin ETF applications by major asset management firms, whales have been regularly observed transferring Bitcoin from one wallet to another. In the last 24 hours, after 11.3 years, a dormant address containing a significant amount of Bitcoin has finally been reactivated, and a considerable amount of Bitcoin has been transferred between wallets, sparking market speculation and raising questions.
On July 22, 2023, it was observed that a dormant address holding 1,037 BTC, worth around $31 million, was reactivated after 11.3 years. The identity of the owner of this wallet remains unknown. The estimated cost of the 1,037 BTC at the time of purchase would have been roughly between $20 – $100. This reactivated dormant address serves as a reminder of the importance of “holding,” highlighting the strategy of accumulating and holding onto cryptocurrency for the long term. However, the owner of the wallet has possibly decided that it’s a good time to sell.
Along with this reactivation, in the last 24 hours, a total of 16,049 BTC was transferred from an unknown wallet to Coinbase and another unknown wallet in two separate transactions. The first transaction occurred at 5:07 AM on July 22, 2023, where 1,890 BTC were transferred, worth around $56 million, to the Coinbase wallet. The second transaction took place on July 21, 2023, where 14,159 BTC were transferred, worth around $421 million, from an unknown wallet to another unknown wallet.
These significant Bitcoin transfers and the reactivation of dormant addresses were observed and tweeted by an individual named “whale alert” on Twitter.
Several factors can lead to the reactivation of dormant crypto wallets. One common occurrence is when the wallet’s owner unintentionally forgets about it over time. Upon rediscovery, they may perceive the present market conditions as favorable and choose to initiate transactions, such as selling their cryptocurrency holdings.