Key Insights:
- A dormant Bitcoin whale has moved 40,192 BTC to a new address after 14 years.
- Analysts believe this may be a major sell-off amid recent BTC price highs.
- Bitcoin’s market could face worse volatility if more whale funds start to enter centralized exchange coffers.
A long-inactive Bitcoin whale recently reawakened, shaking the market with a massive on-chain transfer. This whale is believed to be an early miner from the 2011 era.
They moved 40,192 BTC (worth roughly $4.75 Billion) to a new wallet address. So far, the event has triggered speculation that a sell-off is incoming, and investors should be prepared.
Bitcoin Whale Moves Stir Market Anxiety
According to reports from blockchain analytics firms, a long-dormant Bitcoin whale suddenly woke up on July 4. Soon after waking, they moved 80,000 BTC in 10,000 BTC batches across multiple addresses.
By July 17, the remaining 40,192 BTC had been consolidated into a new address from four wallets. According to analysts, these steps were deliberate.
According to on-chain analysts at Lookonchain and Arkham Intelligence, some funds have already been sent to Galaxy Digital. For context, these funds were likely transferred to Galaxy Digital because of its OTC trading services.
This allows large BTC transactions to be processed privately. This is great for avoiding slippage issues that a large amount of Bitcoin would encounter on any centralized exchange.
Consolidation Could Signal Future Sales
After selling nearly half of their holdings between 4 and 16 July, this whale moved the remaining 40,000 BTC. These were worth around $4.75B at the time of writing.
There have been no confirmed sales. However, analysts believe this recent consolidation could mean more BTC is about to hit the market. Lookonchain posted on X (formerly Twitter) that the Bitcoin whale “may continue to sell” based on past transfer behavior.
Historically speaking, such large movements could increase market volatility. A whale selling even a fraction of these holdings on public exchanges could lead to massive downward pressure on BTC prices.
According to data from CoinMarketCap, Bitcoin is trading near $118,000, down from its recent high. A whale sale could drive prices lower, especially if investor sentiment shifts.
Who Is This Bitcoin Whale?
The identity of this Bitcoin whale is still a mystery. Some have speculated that it could be “Bitcoin Jesus” Roger Ver, the CIA, or Satoshi Nakamoto himself.
However, Conor Grogan of Coinbase has a more compelling narrative. He believes the owner is likely an early Bitcoin miner from the 2011 era.
The block reward was 50 BTC back then, and mining was far less competitive. It would’ve been relatively easy for a single person to accumulate tens of thousands of BTC.
This Bitcoin whale wallet reportedly held around 80,000 BTC from the start. Also, their entire holdings are worth more than $9.5 billion: A sum large enough to shift the market.
For perspective, the German government sold 50,000 BTC last year, and caused a temporary price dip. This whale holds nearly twice that amount, and could single-handedly trigger a bear market.
Whale Movements Stir Speculation, But Not All Transfers Signal a Sell-Off
BTC is currently hovering near $118K amid concerns that whale activity may increase supply. However, it is essential to note that large BTC transfers like this don’t always mean an immediate sale.
Sometimes whales move coins for better custody, to test wallets, or to prepare for over-the-counter trades. This Bitcoin whale previously moved assets to Galaxy Digital and OKX. Combined with recent activity, they might be preparing to sell.
