A Bitcoin (BTC) whale who purchased 2,000 BTC in 2010 caused quite a stir by moving his assets, currently worth $178 million, to Coinbase, according to mempool data.
This transfer was the first transaction made from this wallet since the early days of Bitcoin, when it was worth just $0.06 per BTC.
The investor initially purchased his Bitcoin stash when BTC’s total market value was just $250,000 and daily trading volumes rarely exceeded $60,000. This latest move exemplifies Bitcoin’s astonishing growth, which is trading at $88,532, down slightly from its all-time high of $93,214 reached earlier this week.
Dormant Bitcoin wallets are becoming active, with wallets that have been inactive for more than five years reaching a two-month high, on-chain analytics firm Glassnode reported. Such activity has increased following Bitcoin’s recent price rally, triggered by President-elect Donald Trump’s unexpected victory earlier this month.
Transfers to exchanges like Coinbase typically signal an intent to sell, raising speculation that the whale may be preparing to cash out and potentially make profits in excess of $177 million.
This year has seen several instances of “Satoshi Era” wallets becoming active, holding Bitcoins mined between 2009 and 2011. While it is unclear whether these Bitcoins have been sold, the timing suggests that early adopters may be seizing the opportunity as Bitcoin continues to reach record highs.
The resurgence of early wallets could add significant selling pressure, potentially dampening Bitcoin’s price momentum. Despite this, bullish investors remain optimistic about Bitcoin’s potential to reach the psychologically important resistance level of $100,000 by the end of the year.
However, not all early Bitcoins may re-enter the market. Blockchain analysis firm Chainalysis estimates that 3-4 million BTC have been permanently lost due to forgotten private keys. These “lost forever” coins could keep a portion of the Bitcoin supply out of circulation indefinitely.
*This is not investment advice.