In May alone, two separate dormant addresses, both inactive for over a decade, sent over $100 million worth of BTC in combined transactions.
A Bitcoin wallet that has been inactive for over 12 years has suddenly come alive today. The wallet, which contained 119 BTC ($6.8 million), transferred funds earlier Thursday in a move that has now raised curiosity among keen observers. The transfer marks the first activity from the address since February 28, 2012. This was when Bitcoin itself was not yet a popular technology and the total balance was only worth $600.
On-chain data analysis by blockchain explorer Mempool shows two separate transfers coming from the long-dormant wallet. The first sent roughly 76 BTC ($4.4 million) at 7:11 AM UTC, while a second transaction for the remaining 43 BTC ($2.5 million) followed at 8:55 AM UTC.
Meanwhile, the wallet has yet to be linked to any individual. So, understanding the reason behind this sudden movement remains unknown. However, the near-simultaneous transfers and identical amounts arriving at a new address suggest that the unknown owner may just be trying to consolidate the funds at a different address. This new address is also possibly being controlled by the same individual.
Bitcoin Whale Activity on the Rise
For what it’s worth, 2024 has so far witnessed an unprecedented surge in activity from dormant Bitcoin wallets. In May alone, two separate dormant addresses, both inactive for over a decade, sent over $100 million worth of BTC in combined transactions. Additionally, earlier this year, another notable movement occurred from the fifth-richest Bitcoin address, which had been quiet since 2019.
These reactivations raise curious questions and concerns. For some, they believe it might just be some early adopters attempting to cash in on Bitcoin’s massive price appreciation since inception. Or, it could be that they are simply reorganizing their holdings for strategic reasons. Whatever might be the case, the anonymity that comes with Bitcoin makes it difficult to pinpoint the reasons behind these whale activities.
There could be one explanation, though. 2024 came with a notable development within the crypto space. The United States Securities and Exchange Commission (SEC) gave the green light to Bitcoin exchange-traded funds (ETFs) in January. This decision may have prompted some early investors to start pondering on their holdings as they struggled to decide whether to continue holding or sell off for profits.
The approval of ETFs has undoubtedly brought about a surge in institutional interest, coupled with Bitcoin’s current price point (around $57,242). These factors appear to be influencing many long-term holders to revisit their digital assets.
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