A massive trove of Bitcoin that has been dormant for up to a decade has suddenly woken up and moved out of its wallet.
Blockchain analytics firm CryptoQuant reports that 14,000 coins – worth about $1.35 billion at time of writing – were transferred early on Monday to new wallets.
According to CryptoQuant, the BTC was not moved to exchanges, suggesting that the entity isn’t planning on selling their coins.
“On February 10th, 14,000 Bitcoins that had been inactive for 7 to 10 years were moved. Despite the large volume, these coins have not been transferred to any exchanges, suggesting that they are not intended for immediate sale.
This kind of movement does not necessarily mean that Bitcoin’s price will drop. In the past, similar cases have occurred, but they did not always lead to a price decline. It would be wise to review historical data on Bitcoin’s price movements following such events (refer to the second indicator).
However, it’s important to note that the average acquisition price of these coins is quite low, which could influence the holders’ future decisions regarding potential sales.”
CryptoQuant CEO Ki Young Ju recently said that the Bitcoin bull market still had legs, and likely wouldn’t top out until demand for ETFs tapered off.
“The Bitcoin bull cycle isn’t over.
The buying engine for paper Bitcoins is still running. In 2021, the downturn came two months after GBTC (Grayscale Bitcoin Trust) inflows dried up.
No need to rush calling the cyclical top until ETFs, MSTR (MicroStrategy), and institutional buying slow down.”
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