The sudden activation of dormant addresses, particularly those transferring funds to exchange deposit addresses, could signal potential selling activity.
As per the latest on-chain data, a dormant Bitcoin whale has suddenly turned active nearly after five long years transferring 8,000 Bitcoin (BTC) worth $536.5 million from a Coinbase cold storage wallet.
As per the on-chain data shared by blockchain analytics firm Arkham Intelligence, the Bitcoin address “1ABww1…mCSKq” received a total of 8,000 Bitcoins at block 847,490 on June 11.
Later, the same Bitcoin wallet transferred all their BTC to the Binance deposit address “15u4H…rMsLa”. As per Arkham Intelligence, there were no test transactions before these massive value transfers taking place in subsequent actions.
Back in December 2018, the Coinbase cold-storage wallet had originally acquired a total of 8,000 Bitcoins, acquired in the batches of 200 BTC. Addresses that have been inactive for a long time but suddenly become active, especially if they transfer funds to exchange deposit addresses, may indicate potential selling activity.
Although it’s uncertain whether the Bitcoin holder sold their assets, a recent transfer saw a significant increase from its acquisition price of $3,750 on December 5, 2018, marking a nearly 1,700% surge.
While it’s common for early Bitcoin wallets to become active periodically, a report by Chainalysis and Fortune revealed that nearly 1.8 million Bitcoin addresses have remained dormant for over a decade. Excluding Nakamoto’s wallet, these addresses hold approximately $121 billion worth of Bitcoin based on current market prices.
Bitcoin Retail Demand Drops to 5-Month Low
On-chain data also shows that the average demand from Bitcoin retail investors has dropped to its lowest point in five months since January. Interestingly, the last time the Bitcoin retail demand was this low, BTC price rallied by a strong 75% thereafter in the subsequent two months.
Data provided by CryptoQuant author Axel Adler to X on June 10 indicates that the average monthly change in demand for Bitcoin among retail investors, defined as those with up to $10,000 in transfer volume, has declined to negative 17% over the past 30 days.
Adler noted a comparable drop to negative 18% in January, which coincided with Bitcoin’s price surge from $40,000 to $70,000. This surge occurred following the approval of spot Bitcoin exchange-traded funds (ETFs) in the United States, ultimately leading to Bitcoin reaching its all-time high of $73,679 in mid-March.
This shift in Bitcoin demand is due to several factors such as the upcoming inflation-tracking US Consumer Price Index (CPI). Fir the BTC price to reach news high, the US CPI must fall under 3.3%.
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