Cointelegraph Team
Cointelegraph
Bitcoin (BTC) hodlers are asking questions after 10,000 BTC dormant since 2013 suddenly left its wallet.
On-chain data flagged on Aug. 28-29 confirmed a large tranche of Bitcoin had become liquid again after nearly a decade.
“Lawless era” Bitcoin hit the road
Analysts first began to notice curiously high transaction volumes this weekend as 5,000 BTC was included in a block.
Having stayed in the same wallet since 2013, the funds, the owner of which remains unknown, were soon joined by a near identical 5,000 BTC a day later.
In total, 10,000 BTC moved for the first time since 2013, and on-chain sleuths are curious as to the motive of the whale in charge.
Analysis of the destination wallets has concluded that the funds were not sent to anexchange for sale. Instead, they were split among a large number of new wallets.
Considering the reasoning behind the move, Maartunn, a contributor to on-chain analytics platform CryptoQuant, suggested that privacy may play a part.
Maartunn linked to comments from CryptoQuant CEO Ki Young Ju, who last week argued that those in ownership of “older” coins, especially in large amounts, likely needed to avoid drawing attention to their now greatly-increased wealth. In 2013, BTC/USD traded at a maximum of around $1,165.
For Ki, these coins were “minted in the lawless era.”
“We uncovered that these whales were highly likely: a) early visionaries that accumulated bitcoin via mining and trading, and b) coins coming from the Cryptsy bitcoin exchange just before it was 'hacked' (allegedly stolen customer funds),” a CryptoQuant research piece into old fund movements from Aug. 3 added.
Just six such transactions in Bitcoin history
The transactions were, meanwhile, picked up by the Whale Shadows indicator by Philip Swift, creator of on-chain analytics resource LookIntoBitcoin.
Clearly showing the two spikes in older coins occurring, the data prompted discussion over their implication for BTC price action.
As Swift and CryptoQuant showed, previous such spikes marked local highs for BTC/USD throughout Bitcoin’s history.
Bitcoin whale shadows annotated chart. Source: Philip Swift/ Twitter
Other social media commentators even suggested that the funds were tied to the rehabilitation process at defunct exchange Mt. Gox.
As Cointelegraph reported, fears that compensation of creditors would begin this weekend, sparking a significant sell-off, ultimately appeared unfounded.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.
Recommended Content
Editors’ Picks
Vitalik Buterin slams controversial gambling project ZKasino following scam allegations
Ethereum founder Vitalik Buterin took to Warpcaster, a new type of social network, to condemn ZKasino, a decentralized gambling platform based on Layer 2 Ethereum protocol zkSync.
Starknet jumps 2% after notice inviting specific groups to claim STRK airdrop
Starknet Foundation addressed the groups within the STRK community that were unable to receive the token’s airdrop during the first round. The Layer 2 chain organized an airdrop event in February.
XRP price capped at $0.55 despite retail holdings nearing all-time highs
Ripple price (XRP) failed to break resistance at $0.55 early Wednesday as traders continue to digest Ripple’s recent response to the Securities and Exchange Commission’s (SEC) allegations of illegally selling XRP as a security.
Binance founder Changpeng Zhao could face three-year jail time
US prosecutors are requesting Binance founder and former CEO Changpeng Zhao (CZ) to serve a three-year jail time, according to a Reuters report published Wednesday.
Bitcoin: BTC post-halving rally could be partially priced in Premium
Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?