A Bitcoin wallet containing 50 BTC, untouched since the cryptocurrency's early days, has suddenly sprung to life after more than 14 years of dormancy
A Bitcoin wallet that had been untouched for over 14 years has suddenly sprung to life, executing a transfer of 50 BTC, currently valued at approximately $3.4 million.
This transaction is particularly noteworthy due to the astronomical return on investment it showcases. When these coins were first mined in 2010, Bitcoin traded at a mere $0.08 per coin, making the original value of the coins around $2. Today’s valuation at $3.4 million represents a staggering gain of 169,359,000% for the early investor.
This wallet awakening appears to be part of a larger trend of long-inactive Bitcoin holders suddenly becoming active. A few hours after this transaction, another instance was highlighted by Lookonchain where another long-dormant wallet, this one holding 399 BTC (worth around $27.21 million), transferred its balance after 12 years to cryptocurrency exchange Bitstamp, possibly indicating a planned sale. To put this in perspective, this wallet's initial deposit was received in June 2012, at a time when Bitcoin traded at just $5.45.
This uptick in activity among dormant Bitcoin holders is not isolated. On October 21, blockchain intelligence firm Arkham Intelligence reported that an early Bitcoin miner from the Satoshi Nakamoto era sold some $9.6 million of Bitcoin in recent months.
“A Bitcoin whale that mined its first coins on January 13, 2009, has sold some of the funds from its wallet,” the firm noted. This miner, who first acquired Bitcoin just days after the network's launch, has been progressively selling his holdings since mid-August, amounting to over $10 million worth of Bitcoin sold as of Friday.
However, not all experts are raising concerns. On Thursday, analysts at CryptoQuant provided reassurance regarding the behavior of Bitcoin whales, noting that their overall holdings remain strong.
“Whales’ holdings are at an all-time high. Whales currently hold around 670,000 BTC, which is the highest value ever,” analyst BaroVirtual from the firm reported. He emphasized that this accumulation phase often precedes major market moves, typically foreshadowing a significant price increase once whales start offloading some of their holdings.
That said, fundamentals of the Bitcoin network remain strong. Mining hash rates have hit new highs, indicating increased mining difficulty and underscoring growing network security and the intrinsic value of Bitcoin. The surge in active addresses and rising on-chain transaction fees also indicate renewed interest and activity in the Bitcoin network, both of which are often associated with bullish phases in Bitcoin’s price cycle.
With an accumulation phase in effect and a strong network foundation, analysts from the firm suggested that Bitcoin's recent whale activity could be the “calm before the storm,” hinting at an impending upward trend as long-term holders remain engaged.