Six blockchain addresses that had been dormant for 14 years have just come back to life. As our colleagues at Cryptoast noted, these addresses transferred their entire bitcoin holdings to new addresses. In total, $22 million was moved across the blockchain.
It is not uncommon for dormant addresses to suddenly become active. A few weeks ago, an address that had been dormant for over ten years moved 300 BTC worth $29.4 million. A few months earlier, an address that had been forgotten for 13 years moved 100 bitcoins. All of these transfers are obviously visible on the blockchain to anyone.
Bitcoins to be sold soon?
Transfers may indicate that the holder wants to keep their assets on a more secure storage solution, such as a Ledger wallet, or move them to an exchange platform. This second option suggests that the investor intends to resell their cryptocurrencies in order to generate profits, denominated in fiat currencies. It also happens that some people miraculously find their lost private keys. It is also possible that the sale was planned for a long time, once Bitcoin has reached a certain price.
In the case of the six addresses, it turns out that the owner transferred $740,000 to a Revolut address. The British neobank allows you to hold and exchange a wide range of cryptocurrencies. It can be assumed that the investor intends to convert at least part of the assets into fiat currencies, such as euros or dollars.
The bitcoins held by the six addresses were transferred acquired in 2011, when the price first reached parity with the dollar. In short, a BTC was only worth one dollar. The price then rose above $30, setting the record for the first bull market. In 14 years, the value of the portfolios has exploded. Anyone holding the portfolios has made a great investment.
What impact on the Bitcoin price?
In fact, we can fear that the bitcoins sold will increase selling pressure, and pull down the price of the cryptocurrency. The more users sell their assets, the more the price falls. Conversely, the more users buy Bitcoin, the more the price will go back to the rise.
For the moment, the Bitcoin price is having a hard time going back up. Weighed down by Donald Trump's trade war, Bitcoin is trading below $90,000, a long way from its record of $109,000.
Source: Cryptoast
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