Dormant Bitcoin whales, or long-term HODLers holding huge amounts of BTC, have suddenly awakened and started moving their funds. After over six years of inactivity, three dormant Bitcoin addresses containing thousands of BTC unexpectedly became active again, and they transferred a combined total of 6,500 BTC.
With BTC now showing signs of the resumption of the October rally, these massive Bitcoin transfers could either increase buying momentum or threaten to capsize the current bull run.
Dormant Bitcoin Whales Make Waves With Massive BTC Transfers
Movement of dormant Bitcoin addresses has been sporadic this year, with most causing a stir and rising interest amongst the Bitcoin community. Whale movement and whale acquisitions also spiked up in October, as Bitcoin’s price saw its highest increase in 18 months.
In the latest record of whale transactions this year, on-chain data has shown that a set of dormant Bitcoin from 2017 has moved for the first time in six years. These transactions came from three addresses transferring a total of 6,500 BTC, worth approximately $230 million.
An in-depth look into these addresses shows they received their assets on November 5, 2017, with no movement until now. At the time, Bitcoin was trading at around $7,400, putting the total value of the transaction at $48 million. BTC has grown substantially since then, with a unit now going for $35,230 at the time of writing.
Selling Pressure Incoming?
The timing of the acquisition and transfer of these BTC point to them being controlled by one entity. Uncertainty behind these transfers sometimes can threaten buyer confidence as it could indicate the whale expects a price drop and is securing profits.
Alternatively, it could show they foresee further growth and are reorganizing for the next big rally. On-chain data points to the former, as the BTC is still held in private addresses, showing they are probably still in self-custody.
Whale transfers to cryptocurrency exchanges have increased over the past few days, which may jeopardize Bitcoin’s present bull market and price gain. However, whale purchases have surged during the same period, indicating a combination of buys and selloffs from bulls and bears.
One particular whale transfer that caught the eye of many traders is the movement of 2,905 BTC worth approximately $100 million dollars between two unknown wallets.
— Whale Alert (@whale_alert) November 1, 2023
On the other hand, Bitcoin recently cleared the $35,000 resistance level, as bulls look to continue October’s Bitcoin gains in the new month. November has generally been a profitable month for Bitcoin and on-chain signals currently point to greed on the Bitcoin Fear & Greed Index. A continued break above the $35,000 mark could see BTC reach 2022’s order block at $45,000.
BTC at 35,400 | Source: BTCUSD on Tradingview.com
Featured image from Shutterstock, chart from Tradingview.com