In the past few weeks, a sudden surge in the activities of dormant wallets has been seen. Recently, an old Bitcoin wallet that has not been active for over four years has suddenly moved its holdings.
Sources reveal that the old wallet has moved around $250 million to another unknown Bitcoin address. Also, the Bitcoin wallet on the receiving end now holds almost half a billion of Bitcoin.
As per figures, the old whale’s wallet was worth more than $1 billion at Bitcoin’s all-time high value. However, as the market conditions changed, the whale’s portfolio suffered a major loss in value. In fact, at the transaction time, only $250 million was left from what used to be a $1 billion wallet.
The wallet holder received the initial 15,000 Bitcoins in 2019, almost four years ago, and has been transferred to another wallet for the first time. Sadly, numerous blockchain explorers need more information about the concerned whale, which is why one cannot determine if it is related to any exchange or an OTC trading desk.
However, sources have suggested that the behavior of the wallet shows that it is either owned by a massive retail investor who might have been holding and accumulating Bitcoin on several wallets or a blockchain-based one that needs urgent liquidity. Nonetheless, in the second case, at least one wallet in the chain of transactions would have been tied to a certain entity or identity marked in explorers.
According to the sources, the wallet that received the funds now holds a whopping $430 million and does not seem to be associated with any crypto exchange or firm that might have used the funds for liquidity.
However, a dormant whale wallet suddenly getting active after years is no surprise. In recent times, there have been numerous incidents where wallets have transferred a huge sum of their holdings. For example, on December 19, Todayq News reported that 22,982 Ethereum (ETH) were transferred to new addresses by two addresses that had been idle for more than four years.
Investors in cryptocurrencies frequently stick with Bitcoin and Ethereum to avoid temporary losses during bear markets. As a result, the community is intrigued by the big movement of such assets and tries to understand its motivation. The reason behind it could be the stalemate in the market, which usually comes ahead of strong volatility surges, and a measure intended to protect their funds.